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SettlementCritical RiskMultistate

NJ AG Settles with Experian and T-Mobile for $16M Over Data Breach

Experian and T-MobileNovember 7, 2022New Jersey Attorney General

Penalty Amount

$16,000,000

Consumers Affected

15,000,000

Summary

New Jersey Attorney General Matthew J. Platkin announced a multistate settlement with Experian and T-Mobile over a 2015 data breach that compromised personal information of over 15 million consumers. The companies will pay over $16 million to states and agree to improve data security and vendor management practices. New Jersey will receive approximately $500,000 from the settlement.

Remedy

Experian must implement a comprehensive information security program with zero-trust principles, regular executive-level reporting, enhanced employee training, data minimization and disposal requirements, and specific security measures including encryption, segmentation, patch management, and access controls. T-Mobile must strengthen vendor management practices. Both companies must offer five years of free credit monitoring services to affected consumers.

Monetary PenaltyCompliance ProgramReporting Requirements

Contract Impact

In-house legal teams should review vendor agreements (especially with data brokers like Experian), customer agreements (for telecom services like T-Mobile), and data processing agreements. Focus on clauses governing data security obligations, breach notification timelines and procedures, vendor management and oversight requirements, data retention and disposal policies, and consent mechanisms. Changes may include strengthening encryption and access control standards, mandating regular security audits, shortening breach notification windows to consumers and regulators, requiring enhanced third-party risk assessments, and updating data retention schedules to minimize stored personal information.

Contract Search Terms

data security standardsvendor management provisionsbreach notification clausedata processing addendumencryption requirementsaudit rightsincident response plandata retention schedulethird-party risk assessmentconsumer notification procedures

Violation Types

Entity Details

Entity

Experian and T-Mobile

Industry

Financial Services

Official Sources

Source Evidence

Entity Name
"Experian and T-Mobile"
Fine Amount
"more than $16 million"
Violation Types
"lax data security"
Violation Types
"compromise of consumer data"

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