Photo: Intel Free Press
Lenovo Inc. is paying $3.5 million to resolve charges that the company violated state consumer protection laws by pre-installing software on laptop computers that made consumers’ personal information vulnerable to hackers.
In August 2014, Lenovo began selling some laptop computers pre-loaded with advertisement software called VisualDiscovery, a software created by Superfish Inc. VisualDiscovery allowed a user to hover over a digital image and see the same or similar products on other websites operated by Superfish retail partners.
The software also collected users’ sensitive personal information, including communications with encrypted websites, and transmitted this information to Superfish Inc., thirty-two states attorneys general alleged in a lawsuit. The VisualDiscovery software also created a security vulnerability that made consumers’ information susceptible to certain hackers.
Lenovo Inc. is accused of failing to provide consumers with an easy or efficient way of opting out of or disabling the software. The investigating states claimed that Lenovo Inc.’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.
In addition to the payment, the settlement requires Lenovo Inc. to change its consumer disclosures about pre-installed advertising software, to require a consumer's consent to using the software on their device, and to provide a reasonable and effective means for consumers to opt-out, disable, or remove the software. Lenovo Inc. also is being required to carry out a software security compliance program.
States participating in the settlement include: Arizona, Arkansas, California, Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, and Washington.
