Penalty Amount
$16,500,000
Consumers Affected
3,690,813
The FTC settled with Avast for deceiving customers by claiming its antivirus software blocked tracking while secretly collecting and selling browsing data. Avast must pay $16.5 million in refunds and is banned from such practices. The FTC is now processing claims for affected consumers.
Avast is required to pay $16.5 million to a refund fund, is permanently banned from selling or licensing browsing data for advertising purposes and from misrepresenting data practices, and must comply with other requirements.
In-house legal teams should review all customer-facing agreements for antivirus/security software (end-user license agreements, terms of service) and vendor contracts where data is shared with third parties (e.g., analytics, advertising partners). Key clauses to scrutinize include: (1) data collection and use descriptions, ensuring they explicitly disclose if browsing data will be sold/licensed for advertising; (2) consent mechanisms, verifying they obtain affirmative, informed consent for such sales; (3) privacy policy representations, cross-checking marketing claims against permitted data practices; (4) data sharing permissions with subsidiaries or affiliates; and (5) data retention and deletion schedules. Changes may be needed to add clear, conspicuous disclosures about data sales, implement granular opt-out/opt-in consent, prohibit re-identification of data, and restrict advertising use of data from security products.
Entity
Avast
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/02/ftc-announces-refund-claims-process-avast-customers-impacted-deceptive-privacy-claims
ftc order will ban avast selling browsing data advertising p
https://www.ftc.gov/news-events/news/press-releases/2024/02/ftc-order-will-ban-avast-selling-browsing-data-advertising-purposes-require-it-pay-165-million-over
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Avast"
"pay $16.5 million"
"deceived users by claiming that its software would protect consumers’ privacy by blocking third party tracking, but it failed to adequately inform consumers that it would collect and sell their detailed, re-identifiable browsing data."
"February 2024"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.