Penalty Amount
$500,000
Consumers Affected
184,491
The FTC settled with CafePress's former owner Residual Pumpkin Entity, LLC and buyer PlanetArt, LLC over data security failures that led to a breach exposing Social Security numbers and other sensitive data. Residual Pumpkin paid $500,000 for victim compensation, and both companies must implement comprehensive security programs. A claims process is open for affected consumers until March 10, 2024.
Residual Pumpkin must pay $500,000 to compensate victims, and both Residual Pumpkin and PlanetArt must implement comprehensive information security programs. Eligible consumers can file claims for payments through the FTC's online portal.
In-house legal teams should review all vendor, customer, and data processing agreements where personal information (especially Social Security numbers) is handled or stored. Focus on clauses detailing data security obligations, encryption requirements for sensitive data at rest and in transit, breach notification timelines and procedures, and audit/inspection rights. Given the failure to implement 'reasonable security measures,' agreements should be updated to mandate specific security frameworks (e.g., NIST, ISO 27001), require regular security audits and penetration testing, and clearly allocate liability and remediation costs in the event of a breach involving unencrypted SSNs or other sensitive data.
Entity
Residual Pumpkin Entity, LLC and PlanetArt, LLC
Also known as: CafePress
Industry
RetailOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-announces-claims-process-consumers-affected-cafepresss-data-security-failures
RefundsbyCase
https://public.tableau.com/app/profile/federal.trade.commission/viz/Refunds_15797958402020/RefundsbyCase
ftc takes action against cafepress data breach cover
https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-takes-action-against-cafepress-data-breach-cover
CafePress
https://www.ftc.gov/CafePress
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Residual Pumpkin Entity, LLC, the former owner of CafePress, and PlanetArt, LLC, which bought CafePress in 2020"
"Residual Pumpkin also agreed to pay $500,000"
"failed to implement reasonable security measures to protect sensitive information stored on its network, including plain text Social Security numbers, inadequately encrypted passwords, and answers to password reset questions. The company’s data security failures led to a data breach that exposed this sensitive data including Social Security numbers."
$500K
The FTC took action against CafePress for failing to secure consumer data and covering up a major data breach. The company stored sensitive information insecurely and delayed notifying customers. As part of the settlement, Residual Pumpkin must pay $500,000 in redress, and both companies must implement comprehensive security programs.
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$106.8M
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