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NY AG Fines National Amusements $250K for Shield Act Violations

National Amusements, Inc.November 15, 2024New York Attorney General

Penalty Amount

$250,000

Consumers Affected

82,128

Summary

New York Attorney General Letitia James reached a $250,000 settlement with National Amusements, Inc. after an investigation found the movie theater operator failed to implement adequate data security, leading to a breach exposing personal information of over 23,000 New York employees. The company also violated the New York Shield Act by delaying notification to affected individuals for more than a year after the breach. As part of the settlement, National Amusements must pay the penalty and implement enhanced cybersecurity measures including encryption, password policies, and an incident response plan.

Remedy

National Amusements must pay $250,000 in penalties to New York. The company is required to implement a comprehensive information security program including encryption of all personal information (stored or transmitted), reasonable password policies (complex passwords, rotation, protected storage), a regular testing program to identify and resolve security vulnerabilities, and an incident response plan for data security issues.

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review all vendor agreements that grant access to employee personal information to ensure they require enforcement of MFA for all access channels, implementation of comprehensive data security programs, and encryption of all personal information both at rest and in transit. Contracts should include clear, legally compliant breach notification timelines (e.g., aligning with the New York Shield Act’s requirements) to avoid delayed notification violations. Teams should also verify that vendor agreements mandate regular vulnerability testing, incident response planning, and password policy standards. For vendors handling employee data, include audit rights to assess compliance with security requirements, and ensure that any breach notification obligations are explicitly defined with strict timing and scope requirements.

Contract Search Terms

multifactor authentication (MFA) enforcementdata security programbreach notification timelineemployee data protectionincident response planencryption of personal informationpassword policy requirementsvulnerability testing program

Laws Cited

New York Shield Act

Violation Types

Entity Details

Entity

National Amusements, Inc.

Also known as: National Amusements

Industry

Media & Entertainment

Official Sources

Source Evidence

Title
"Attorney General James Secures $250,000 from Movie Theater Operator for Failing to Protect Employees’ Personal Information"
Event Date
"November 15, 2024"
Jurisdiction
"New York Attorney General Letitia James"
Event Type
"today’s agreement"
Entity Name
"National Amusements, Inc."
Fine Amount
"National Amusements will pay New York $250,000 in penalties"

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