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Multi-State $17.5M Settlement with Home Depot for Self-Checkout Data Breach

Home DepotNovember 24, 2020New Jersey Attorney General

Penalty Amount

$17,500,000

Consumers Affected

40,000,000

Summary

Home Depot settled for $17.5 million over a 2014 data breach that compromised personal information of over 40 million consumers due to inadequate security at self-checkout kiosks. The settlement requires extensive cybersecurity reforms including an information security program, employee training, and encryption. New Jersey receives $579,623 from the multi-state settlement.

Remedy

Home Depot must pay $17.5 million and implement cybersecurity measures such as creating an information security program headed by an executive, providing security training for personnel, maintaining encryption protocols, implementing strong password policies, two-factor authentication, and firewall policies.

Monetary PenaltyInjunctionCompliance Program

Contract Impact

In-house legal teams should review vendor agreements with third-party payment processors and point-of-sale (POS) system providers to ensure they mandate robust security standards for self-checkout kiosks, including encryption and regular vulnerability assessments. Customer agreements and terms of service should be examined for adequate data protection, breach notification, and audit rights clauses. Employee contracts and training materials must align with mandated cybersecurity training requirements. Changes may include adding specific security controls for POS environments, incorporating settlement-mandated encryption standards, clarifying incident response protocols, and ensuring subcontractor compliance with the required information security program.

Contract Search Terms

point-of-sale securityself-checkout kiosksinformation security programencryption protocolsbreach notification proceduresconsumer data protectionmulti-state settlementcybersecurity reformsemployee training requirementsdata security requirements

Violation Types

Entity Details

Entity

Home Depot

Industry

Retail

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Home Depot"
Fine Amount
"Home Depot will pay $17.5 million"
Violation Types
"inadequate security measures in place when data thieves infiltrated its information systems"

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