Consumers Affected
143,000,000
New Jersey Attorney General Christopher Porrino announced that New Jersey has joined a multi-state investigation into Equifax following a data breach affecting 143 million consumers. The multi-state group sent a letter demanding Equifax disable fee-based credit monitoring services and reimburse consumers for credit freeze fees with other bureaus, citing unfair practices and a months-long delay in breach disclosure.
Equifax is demanded to disable enrollment links for fee-based credit monitoring services and to reimburse consumers for fees incurred when obtaining security freezes from other credit bureaus, such as Experian and Transunion.
In-house legal teams should review customer agreements for credit monitoring and identity theft protection services, focusing on clauses that authorize fee-based offerings, credit freeze procedures, and reimbursement policies. Specifically, examine terms permitting charges for security freezes, the differentiation between free and paid services, and breach notification timelines. Vendor agreements with other credit bureaus or data processors must include provisions for cost-sharing in breach scenarios and compliance with multi-state demands. Data processing agreements should enforce robust data security obligations and clear incident response protocols. Potential changes include amending contracts to waive credit freeze fees, disable promotional links for paid services post-breach, and enhance disclosure requirements to prevent delays, ensuring alignment with consumer protection standards.
Entity
Equifax
Industry
Data Broker"Equifax"
"massive data breach with potential to impact 143 million consumers"
"months-long delay between the breach and Equifax’s public disclosure"
"143 million consumers"
$175.0M
California Attorney General Xavier Becerra, leading a multistate coalition of all 50 states, the District of Columbia, and Puerto Rico, announced a settlement with Equifax over a 2017 data breach that exposed personal information of 147 million consumers, including 15 million Californians. The breach resulted from Equifax’s failure to apply a critical software patch and implement adequate security measures, with disclosure delayed for months after discovery. Equifax will pay $175 million in state penalties, up to $425 million in consumer restitution, and implement enhanced data security measures and ten years of free credit monitoring for affected consumers.
$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.
Attorney General Jennifer Davenport co-led a coalition of 49 attorneys general in calling on the FCC to strengthen rules to cut off scammers' access to legitimate telephone numbers. The coalition's letter requests stronger certification rules, regular reporting, and prohibitions on number cycling to combat illegal robocalls.
Governor Sherrill and Attorney General Davenport announced coordinated executive actions to reduce and eliminate junk fees in New Jersey. The initiative includes an Executive Order directing state agencies to review industries for junk fees and an Enforcement Statement from the Division of Consumer Affairs explaining how junk fee practices may violate the New Jersey Consumer Fraud Act.
The New Jersey Bureau of Securities announced its 2026 annual investment adviser examination, with a particular focus on firms' use of artificial intelligence and cybersecurity protocols. The examination requires nearly 800 registered investment adviser firms to answer questions about AI use in portfolio management, data protection policies, and third-party vendor due diligence. Failure to comply may result in administrative action.