Cybersecurity company Avast is accused of collecting and selling user browsing data without consent, resulting in a $16.5 million fine from the FTC. The company misled users about their data protection practices, violating privacy rights.
Avast Faces $16.5 Million Fine for Selling User Data, FTC Alleges
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Cybersecurity software company Avast is facing a hefty $16.5 million fine from the Federal Trade Commission (FTC) following allegations of selling consumer data to third parties. The FTC filed a complaint on Wednesday, accusing Avast of collecting and selling user browsing data without their knowledge or consent, while simultaneously misleading users about their data protection practices.
Avast, which originated in the late 1980s in Czechoslovakia during the Soviet Bloc era, has grown over time to become a prominent player in the cybersecurity industry. The company offers antivirus software and other cybersecurity solutions and is now part of Gen Digital, a publicly-traded company with dual headquarters in Tempe, Arizona, and Prague, Czech Republic.
According to the FTC complaint, Avast Limited, based in the United Kingdom, and its Czech subsidiary claimed to block tracking cookies and prevent online tracking, but instead, they were collecting and selling user data to third parties since at least 2014. The agency further alleges that Avast misled users by assuring them that their information would only be shared in anonymous and aggregate form, which was not the case.
FTC Highlights the Sensitivity of Browsing Data
FTC Chair Lina Khan highlighted the sensitivity of browsing data, stating that it can reveal highly personal and sensitive information about individuals. She emphasized that Avast's conduct was not only deceptive but also an unfair practice, as browsing data deserves heightened protection.
Avast Sold Data to Over 100 Clients
The FTC's investigation found that Avast had sold data to more than 100 clients, including consulting firms, advertising companies, and data brokers. In addition to the substantial fine, Avast is now prohibited from selling or licensing data for advertising purposes.
Avast Settles with the FTC
Avast confirmed that it reached a settlement with the FTC regarding its subsidiary, Jumpshot, which was voluntarily closed in January 2020. While the company disagrees with the FTC's allegations and characterization of the facts, it is pleased to resolve the matter and intends to continue serving its millions of customers worldwide.
Importance of Data Privacy and Transparency
This case serves as a reminder of the importance of data privacy and the need for companies to be transparent and honest about their data practices. The FTC's action against Avast sends a strong message that misleading consumers and mishandling their data will not be tolerated. As the digital landscape continues to evolve, it is crucial for individuals and organizations to prioritize cybersecurity and ensure the protection of sensitive information.
