The FTC finalized a consent order against Blackbaud Inc. for alleged security failures that led to a data breach exposing personal data of millions of consumers. Blackbaud must delete unnecessary data, implement a security program, and not misrepresent its policies. No monetary penalty was imposed.
Blackbaud is required to delete data it no longer needs, develop a comprehensive information security program, establish a data retention schedule, refrain from misrepresenting data security and retention policies, and notify the FTC of future data breaches.
In-house legal teams should review all vendor agreements where Blackbaud is a data processor or service provider (e.g., SaaS, fundraising, financial software contracts) and any customer-facing data processing agreements. Key clauses to scrutinize include data security obligations, breach notification timelines and procedures, data retention and deletion requirements, representations regarding security practices, and indemnification provisions. Given the order's focus on data minimization and deletion of unnecessary data, contracts may need amendments to explicitly require data minimization, mandate encryption of sensitive data (like SSNs and bank accounts), establish clear incident response protocols, and prohibit misrepresentations about security. Teams should also assess audit rights to verify compliance and ensure notification clauses align with the 'without unreasonable delay' standard implied by the FTC's criticism of Blackbaud's two-month delay.
Entity
Blackbaud Inc.
Also known as: Blackbaud
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/05/ftc-finalizes-order-blackbaud-related-allegations-firms-security-failures-led-data-breach
2023181 blackbaud final consent package
https://www.ftc.gov/system/files/ftc_gov/pdf/2023181_blackbaud_final_consent_package.pdf
ftc order will require blackbaud delete unnecessary data boo
https://www.ftc.gov/news-events/news/press-releases/2024/02/ftc-order-will-require-blackbaud-delete-unnecessary-data-boost-safeguards-settle-charges-its-lax
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Blackbaud Inc."
"failed to implement appropriate safeguards to secure and protect the vast amounts of personal data it collects"
"allowed a hacker to breach the company’s network and access the personal data of millions of consumers including Social Security and bank account numbers."
"The company waited nearly two months to notify its customers about the breach and then misled consumers about the extent of the data that was stolen."
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.