In a significant move to protect consumer privacy, the Federal Trade Commission (FTC) has finalized an order against Avast, a software provider, banning the company from selling or licensing web browsing data for advertising purposes. This decision comes as a settlement for charges that Avast and its subsidiaries misled consumers about their privacy protections while selling their detailed browsing data.
The Charges Against Avast
Back in February, the FTC filed a complaint against UK-based Avast Limited and its Czech subsidiary. The complaint highlighted that Avast collected users’ browsing data through their browser extensions and antivirus software without adequate notice or consumer consent. Despite promising protection from online tracking, Avast failed to inform consumers that it was selling their re-identifiable browsing data to over 100 third parties through its subsidiary, Jumpshot.
Key Provisions of the FTC Order
The finalized FTC order mandates several significant actions by Avast:
- Cease Data Sales: Avast and its subsidiaries are prohibited from selling, disclosing, or licensing any web browsing data for advertising purposes.
- Financial Penalty: Avast is required to pay $16.5 million, which is expected to provide redress to affected consumers.
- Data Deletion: Avast must delete all web browsing information transferred to Jumpshot and any derived products or algorithms.
- Consumer Consent: The company must obtain explicit consent from consumers before selling or licensing browsing data from non-Avast products.
- Consumer Notification: Avast is required to notify consumers whose data was sold without consent about the FTC’s actions.
- Comprehensive Privacy Program: Avast must implement a privacy program that addresses the misconduct identified by the FTC.
The FTC’s Role in Consumer Protection
The FTC’s decision underscores its commitment to promoting competition and safeguarding consumer privacy. By holding companies accountable for deceptive practices, the FTC ensures that consumers are protected from misleading conduct and that their data privacy is respected.
How iubenda Can Help
In light of this news, it’s crucial for businesses to have transparent and compliant data privacy practices. Iubenda offers comprehensive solutions for privacy and cookie policies, terms and conditions, and internal privacy management. Ensure your business complies with the latest regulations and avoid hefty fines like Avast.
Protect your business and your customers’ data with iubenda’s easy-to-use compliance solutions. Learn more about how iubenda can help you stay compliant.
