Penalty Amount
$49,420
Lightyear Dealer Technologies (DealerBuilt) settled an investigation into a 2016 data breach where a misconfigured file system exposed personal data, including social security numbers and bank information, of thousands of auto dealership customers nationwide. The settlement includes an $80,784 payment (with $20,000 suspended) and mandatory cybersecurity reforms.
DealerBuilt must pay $80,784 (comprising $49,420 in civil penalties and $31,364 in reimbursed costs, with $20,000 of penalties suspended upon compliance) and implement comprehensive cybersecurity protocols to prevent future breaches.
In-house legal teams should review all vendor and customer agreements where DealerBuilt (or any data management software provider) processes personal data on behalf of auto dealerships. Specifically scrutinize clauses governing data security standards, encryption of sensitive data (like SSNs and financial information), breach notification timelines and responsibilities, data retention and disposal schedules, audit rights for security assessments, and indemnification for data breaches. Given the settlement's mandated reforms, contracts may need amendments to explicitly require compliance with specific security frameworks, mandate regular penetration testing, enforce multi-factor authentication for database access, and require immediate notification of any misconfigurations or unauthorized access.
Entity
Lightyear Dealer Technologies
Also known as: DealerBuilt
Industry
TechnologyOfficial Press Release
https://www.njoag.gov/software-developer-agrees-to-implement-security-protocols-to-settle-investigation-into-data-breach-exposing-personal-information-of-auto-dealership-customers-nationwide-including-thousands-in-nj/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Lightyear Dealer Technologies"
"$49,420 in civil penalties"
"New Jersey Consumer Fraud Act ("CFA")"
"New Jersey Identity Theft Prevention Act ("ITPA")"
"cyber security lapse that allowed unauthorized public internet access to a company database containing personally identifiable information"
$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
Block, Inc. agreed to a $45 million multistate settlement with 46 states for allegedly misleading consumers about the safety of Cash App, failing to protect users from fraud, and not providing promised fraud protection. The settlement requires Block to improve customer support, stop misleading claims, and educate consumers about fraud.
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