Nevada is one of 31 states that will receive a settlement payment from technology company Lenovo Inc. after the company sold certain laptop computers pre-loaded with advertisement software, VisualDiscovery.  Nevada will receive $63,897.04 in the settlement.

The states alleged that the software also collected users’ sensitive personal information, including communications with encrypted websites, and transmitted this information to Superfish, Inc.The VisualDiscovery software is also alleged to have 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 means 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.

“Safeguarding consumer’s cyber security and private data from illegal intrusions is a priority for my Bureau of Consumer Protection,” said Laxalt. “This settlement holds manufacturers accountable for not disclosing facts to their consumers, and my office will continue to take action against companies that put the personal information of Nevada’s consumers at risk.”

In addition to the monetary payment, the settlement requires Lenovo Inc. to change its consumer disclosures about pre-installed advertising software, to require a consumer's affirmative 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. must also implement a software security compliance program and obtain assessments on a regular basis from a qualified, independent, third-party professional who will evaluate the effectiveness and compliance with the security compliance program