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."
$100K
New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs announced a Consent Order with King Distribution LLC and 17 related retail smoke shops, resolving allegations that the companies illegally sold flavored vapor products in violation of New Jersey’s consumer protection laws. The Consent Order imposes a $100,000 civil penalty, requires reimbursement of $22,279 in investigation costs, and prohibits the companies from selling or distributing flavored vapor products in New Jersey. The enforcement action is part of New Jersey’s ongoing efforts to protect youth from flavored vape products, which have been permanently banned in the state since January 2020.
The New Jersey Bureau of Securities issued a Cease and Desist Order on April 30, 2026, against Titan Macro Finance for operating an investment fraud scheme via WhatsApp and Instagram that defrauded at least one New Jersey investor of $64,000. The scheme involved unregistered broker-dealer activity, fake trading profits, and undisclosed fees to access investor funds. The action was coordinated with the California Department of Financial Protection and Innovation, which issued a similar order against the entity for violating California’s Commodity Code.
New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.
New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.
$2.0M
New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.
Ibelis Gonzalez, a 46-year-old Jersey City resident, was indicted on charges including second-degree theft by deception, second-degree impersonation/theft of identity, and third-degree false government documents. She is alleged to have used fake identification to obtain debit cards in six victims' names, stealing approximately $86,840 from their bank accounts between May and June 2024. The case is being prosecuted by the New Jersey Division of Criminal Justice, with potential maximum fines of $150,000 for second-degree charges and $15,000 for third-degree charges.