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Experian, T-Mobile to Pay $16M Over 2012, 2015 Data Breaches

Experian; T-MobileNovember 7, 2022Connecticut Attorney General

Penalty Amount

$16,000,000

Summary

Connecticut, as part of a 40-state coalition, secured multistate settlements totaling over $16 million with Experian and T-Mobile related to data breaches in 2012 and 2015 that exposed consumers' personal information. Experian agreed to pay $12.67 million and implement enhanced data security measures, while T-Mobile agreed to pay $2.43 million and strengthen vendor management. Additionally, Experian Data Corp. paid $1 million to resolve a separate 2012 breach investigation, with all entities required to improve data protection practices.

Remedy

Experian agreed to pay $12.67 million and implement a comprehensive information security program with zero-trust principles, due diligence, data minimization, and specific security requirements. T-Mobile agreed to pay $2.43 million and implement a vendor risk management program with contractual security requirements for vendors. Experian Data Corp. agreed to pay $1 million to improve vetting of third parties and maintain a Red Flags program. Experian also must offer 5 years of free credit monitoring to affected consumers.

Monetary PenaltyConsent DecreeCompliance Program

Contract Impact

In-house legal teams should review vendor agreements (particularly those involving data brokers or credit reporting agencies like Experian), customer agreements (such as telecom service contracts with T-Mobile), and any data processing addendums. Focus on clauses governing data security obligations, breach notification timelines and procedures, audit and inspection rights, indemnification for data breaches, data encryption and access control standards, incident response plans, data retention and disposal policies, and vendor oversight requirements. Changes may include strengthening security specifications (e.g., mandatory encryption, regular penetration testing), clarifying breach notification within 72 hours, requiring third-party security audits, enhancing vendor due diligence and monitoring provisions, and updating indemnification terms to cover regulatory fines and consumer redress.

Contract Search Terms

data security standardsbreach notification clausevendor management provisionsdata protection practicesencryption requirementssecurity audit rightsincident response plandata retention policyaccess controlspenetration testing

Violation Types

Entity Details

Entity

Experian; T-Mobile

Industry

Data Broker

Multistate Coalition

Official Sources

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