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"
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.