The settlement requires Marriott to enhance its data security practices, adopt a risk-based approach, and provide specific consumer protections, including a payment of $52 million to the participating states. Maryland will receive $2,214,224 of this amount.
Attorney General Anthony G. Brown announced today that Maryland, in collaboration with 49 other state attorneys general, has reached a settlement with Marriott International, Inc. This agreement follows an extensive investigation into a significant multi-year data breach involving one of Marriott's guest reservation databases.
Maryland played a key role in the investigation, which revealed that from July 2014 to September 2018, hackers accessed the systems of Starwood, which Marriott acquired in 2016, compromising the personal information of approximately 131.5 million guests. The breach included sensitive data such as contact details, birth dates, reservation history, and, in some cases, unencrypted passport numbers and credit card information.
“Marylanders should not have to choose between staying in a hotel and protecting their privacy. Consumers should be able to trust that companies will take reasonable steps to protect their personal information,” said Attorney General Brown. “This settlement ensures that Marriott hotel guests can rest easy knowing that their personal data will be better protected moving forward.”
The settlement requires Marriott to enhance its data security practices, adopt a risk-based approach, and provide specific consumer protections, including a payment of $52 million to the participating states. Maryland will receive $2,214,224 of this amount.
The investigation found that Marriott misrepresented the security measures it had in place to protect consumer data. Today's settlement addresses allegations of violations of Maryland’s Consumer Protection Act and Personal Information Protection Act due to inadequate data security measures during the integration of Starwood’s systems.
In conjunction with the attorneys general, the Federal Trade Commission has also reached a similar settlement with Marriott.
As part of the agreement, Marriott will implement a comprehensive Information Security Program, which includes:
Implementing a comprehensive Information Security Program. This includes new overarching security program mandates, such as incorporating zero-trust principles, regular security reporting to the highest levels within the company, including the Chief Executive Officer, and enhanced employee training on data handling and security.
Data minimization and disposal requirements, which will lead to less consumer data being collected and retained.
Specific technical security requirements with respect to consumer data.
Increased vendor and franchisee oversight and clearly outlined contracts with cloud providers.
In the future, if Marriott acquires another entity, it must timely assess the acquired entity’s information security program and develop plans to promptly address identified gaps or deficiencies in security as part of the integration into Marriott’s network.
An external third-party evaluation of Marriott’s information security program every two years for a period of 20 years.
Additionally, the settlement grants Maryland resident's new consumer rights, including the option to request data deletion, which is not currently mandated by state law. Marriott must also offer multi-factor authentication for loyalty accounts and review those accounts for suspicious activity.
This settlement marks a significant step in holding large corporations accountable for data security and ensuring consumer protection in the digital age.
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