Penalty Amount
$2,000,000
Consumers Affected
22,000,000
New Jersey joined a multistate $2 million settlement with online retailer CafePress over a 2019 data breach that exposed personal information of approximately 22 million consumers nationwide, including over 540,000 in New Jersey. The settlement requires CafePress to implement a comprehensive cybersecurity program, incident response plan, and third-party assessments for five years, with payment suspended pending compliance.
CafePress must pay $2 million (with $750,000 immediate, including $98,368 to New Jersey), implement a comprehensive information security program with regular updates and CEO reporting, develop an incident response and breach notification plan, enhance personal information safeguards (encryption, segmentation, penetration testing, password management, data minimization), provide clear consumer notice regarding account closure and data deletion, and undergo third-party security assessments for five years. The remaining balance is suspended contingent on compliance.
In-house legal teams should review vendor agreements, customer terms of service, and data processing agreements for clauses addressing data security, breach notification, and incident response. Specifically, examine requirements for encryption of sensitive data (e.g., SSNs, payment details), timelines for breach reporting, obligations to conduct third-party security assessments, and data retention/disposal policies. Changes may include mandating a comprehensive cybersecurity program, implementing regular risk assessments, strengthening access controls, and ensuring compliance with state data breach notification laws. Also, assess indemnification provisions for breach-related costs and audit rights to monitor vendor compliance.
Entity
CafePress
Industry
RetailOfficial Press Release
https://www.njoag.gov/ag-grewal-joins-2-million-settlement-with-online-retailer-cafepress-over-2019-data-breach/
121820 CafePress AVC
https://www.nj.gov/oag/newsreleases20/121820-CafePress-AVC.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"settlement with internet retailer CafePress"
"total payment to the states of $2 million"
"The data breach compromised the personal information of approximately 22 million consumers nationally"
$500K
The FTC finalized an order against CafePress for failing to secure consumer data and covering up a data breach. The company must implement comprehensive security measures, and its former owner must pay $500,000 in redress to victims.
$370K
The FTC settled with CafePress for failing to implement reasonable data security measures, leading to multiple breaches that exposed Social Security numbers and other sensitive data. As part of the settlement, over $370,000 in refunds are being distributed to 20,044 consumers who filed valid claims.
$18.0M
Attorney General Jennifer Davenport joined a bipartisan coalition of 42 attorneys general in announcing a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised genetic data of 6.9 million people worldwide, including nearly 150,000 in New Jersey. The settlement provides $18 million to states from available bankruptcy funds, plus enhanced data security and consumer deletion rights for the successor entity, 23andMe Research Institute.
$45.0M
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