Penalty Amount
$370,000
Consumers Affected
20,044
The FTC settled with CafePress for failing to implement reasonable data security measures, leading to multiple breaches that exposed Social Security numbers and other sensitive data. As part of the settlement, over $370,000 in refunds are being distributed to 20,044 consumers who filed valid claims.
The FTC is sending payments totaling more than $370,000 to 20,044 consumers who filed a valid claim before the deadline, via checks and PayPal.
In-house legal teams should review vendor agreements, customer contracts, and any data processing agreements (DPAs) that involve the handling of sensitive personal data (e.g., Social Security numbers). Focus on clauses addressing data security obligations, data retention limits, and breach notification requirements. Specific changes may include: mandating encryption for sensitive data at rest and in transit; implementing clear data minimization and retention schedules; requiring prompt breach notification to affected individuals and regulators (e.g., within 72 hours); and adding provisions for regular security audits and vulnerability assessments. Contracts should also prohibit storing sensitive data in clear, readable text and require reasonable access controls.
Entity
CafePress
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-sends-refunds-consumers-harmed-cafepresss-data-security-failures
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
ftc announces claims process consumers affected cafepresss d
https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-announces-claims-process-consumers-affected-cafepresss-data-security-failures
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"CafePress"
"CafePress failed to implement reasonable security measures to protect the sensitive information stored on its network. In addition to storing Social Security numbers and password reset answers in clear, readable text, CafePress retained the data longer than was necessary. As a result of its shoddy security practices, CafePress’ network was breached multiple times allowing hackers to access sensitive user data including Social Security numbers. The company also failed to adequately inform consumers about these breaches."
"20,044 consumers"
$500K
The FTC finalized an order against CafePress for failing to secure consumer data and covering up a data breach. The company must implement comprehensive security measures, and its former owner must pay $500,000 in redress to victims.
$2.0M
New Jersey joined a multistate $2 million settlement with online retailer CafePress over a 2019 data breach that exposed personal information of approximately 22 million consumers nationwide, including over 540,000 in New Jersey. The settlement requires CafePress to implement a comprehensive cybersecurity program, incident response plan, and third-party assessments for five years, with payment suspended pending compliance.
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.