On December 18, seven states have entered into a settlement agreement with e-retailer Cafe-Press for $2 million stemming from a 2019 data breach that exposed information of approximately 22 million consumers. The breach affected consumers’ personal information, including usernames and passwords, Social Security numbers, and/or Taxpayer Identification numbers.
Of the $2 million, $750,000 will be an immediate payment divided among the states: New Jersey, New York, Connecticut, Indiana, Kentucky, Michigan and Oregon.
According to the settlement agreement, if CafePress improves its data privacy practices, the states have agreed to suspend the balance of the settlement. Those improvements include implementing a comprehensive cybersecurity program that is updated and assessed regularly, a data breach notification plan (including preparation, detection, analysis, containment, eradication and recovery), as well as other safeguards like encryption, segmentation and penetration testing. CafePress must also update its disclosures to consumers including information on account closure and data deletion. The company must also have a third-party risk assessment for the next five years.