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SettlementCritical RiskMultistate

Target Settles Multi-State Data Breach Enforcement for $18.5M

TargetMay 23, 2017California Attorney General

Penalty Amount

$18,500,000

Summary

Target settled a multi-state enforcement action for a 2013 data breach that exposed payment card information of over 40 million customers due to inadequate security. The $18.5 million settlement requires Target to implement advanced security measures, and California receives over $1.4 million.

Remedy

Target must pay $18.5 million and implement a comprehensive information security program, including appointing an executive to oversee security, encrypting payment card data, and adopting other technological measures as recommended in the Attorney General's Data Breach Reports.

Monetary PenaltyInjunctionCompliance Program

Contract Impact

In-house legal teams should review vendor agreements for data security obligations, ensuring they mandate compliance with standards like PCI DSS and include audit rights and incident response requirements. Customer agreements must be assessed for adequate breach notification clauses, including timelines and scope of affected data. Employee agreements and internal policies should cover data handling protocols, access controls, and encryption. Updates may be needed to incorporate specific security measures, regular vulnerability assessments, and clearer liability provisions for payment card data breaches, aligning with multi-state enforcement expectations.

Contract Search Terms

payment card data securityPCI DSS compliancedata breach notification clausesecurity incident response planencryption standardsvendor security assessmentsaccess controlsmulti-factor authenticationsecurity audit rightsdata retention policy

Violation Types

Entity Details

Entity

Target

Industry

Retail

Official Sources

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