Penalty Amount
$3,500,000
New Jersey joined 31 other states and the FTC in a $3.5 million settlement with Lenovo for pre-installing VisualDiscovery ad software on laptops that created a 'man-in-the-middle' security vulnerability, intercepting users' encrypted data without adequate disclosure or opt-out mechanisms. The settlement requires Lenovo to improve transparency, obtain affirmative consent, provide effective opt-out tools, and implement a long-term security compliance program with independent audits.
Lenovo must pay $3.5 million total to the states, change disclosures about pre-installed advertising software, obtain a consumer's affirmative consent before enabling such software, provide a reasonable and effective means to opt-out, disable, or remove it, and implement and maintain a software security compliance program with initial and biennial third-party assessments for 20 years.
Entity
Lenovo Inc.
Also known as: Lenovo
Industry
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