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.
In-house legal teams should review vendor agreements with software providers (e.g., Superfish) for data sharing and security representations, customer end-user license agreements (EULAs) and terms of service for pre-installed software disclosures and consent mechanisms, and any data processing agreements. Specific clauses to scrutinize include those governing pre-installation of third-party software, data interception and security representations, consumer consent and opt-out procedures, and audit rights. Changes may be needed to mandate explicit, affirmative consent before enabling such software, require clear and accessible opt-out tools, implement mandatory security audits and compliance programs, and enhance transparency about pre-installed applications and associated risks.
Entity
Lenovo Inc.
Also known as: Lenovo
Industry
Technology"settlement with Lenovo Inc."
"$3.5 million settlement"
"violated state consumer protection laws"
"VisualDiscovery operated by acting as a local proxy, or "man in the middle," that stood between the consumer's browser and all Internet web sites that the user visited, including encrypted sites. This technique allowed the software to see all of a user's sensitive personal information that was transmitted on the Internet. Consumer information– including sensitive communications with encrypted Web sites– would be collected and transmitted to Superfish."
"Lenovo's failure to disclose the presence of VisualDiscovery on its computers, its failure to warn consumers that the software created a security vulnerability and its inadequate opt-out procedure violated state consumer protection laws."
A bipartisan coalition of state attorneys general led by New Jersey, California, Colorado, and Kentucky is taking Meta Platforms, Inc. to trial, alleging that Meta designed addictive features on Instagram and Facebook that harm minors' mental health, illegally collected data from children under 13 without the required protections under COPPA, and misled users about platform safety. Opening arguments begin August 18, 2026, in the U.S. District Court for the Northern District of California. No monetary penalty or final remedy has yet been imposed.
A coalition of 21 state attorneys general and Pennsylvania filed lawsuits against the Trump Administration, DOT, FMCSA, DHS, and AAMVA to prevent the unlawful demand for a database containing personal information of 17 million commercial driver's license holders. The lawsuits allege violations of federal privacy laws and the Administrative Procedure Act, and seek an emergency order to block the data transfer.
Attorney General Jennifer Davenport joined a coalition of 17 attorneys general in sending comment letters to the Office of the Comptroller of the Currency and the Federal Reserve Board, urging them to deny OppFi's application to acquire BNC National Bank and obtain a national bank charter. The coalition argues that the charter would allow OppFi to circumvent state usury laws and offer high-cost loans with APRs up to 200%, harming consumers.
$400.0M
Attorney General Jennifer Davenport joined a coalition of 43 states and territories in announcing a $400 million settlement in principle with Sandoz Inc. to resolve allegations of widespread price-fixing and anticompetitive conduct in the generic drug market. Sandoz will pay approximately $469 million total including prior settlements, and has agreed to internal reforms to ensure fair competition.
Press release announcing that Governor Mikie Sherrill will nominate consumer protection expert Christopher L. Peterson to serve as Director of the New Jersey Division of Consumer Affairs. Peterson is a former senior CFPB official and legal scholar. No enforcement action or privacy violation is described.
The New Jersey Attorney General announced that Paramount and Warner Bros. have agreed to put their merger on hold while a lawsuit challenging the merger proceeds. The agreement prevents the merger from moving forward until the end of trial or June 1, 2027, whichever comes first.