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SettlementHigh RiskMultistate

Multistate $2M Settlement with CafePress Over 2019 Data Breach

CafePressDecember 18, 2020New Jersey Attorney General

Penalty Amount

$2,000,000

Consumers Affected

22,000,000

Summary

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.

Remedy

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.

Monetary PenaltyConsent DecreeAudit RequirementCompliance ProgramReporting RequirementsData DeletionCorrective Notice

Contract Impact

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.

Contract Search Terms

data security requirementsbreach notification clauseincident response planthird-party security assessmentsdata encryption standardsPCI DSS compliancesocial security number protectiondata retention and disposalaudit rightssub-processor obligations

Violation Types

Entity Details

Entity

CafePress

Industry

Retail

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"settlement with internet retailer CafePress"
Fine Amount
"total payment to the states of $2 million"
Violation Types
"The data breach compromised the personal information of approximately 22 million consumers nationally"

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