Everalbum, Inc. settled FTC allegations that it deceived consumers about its use of facial recognition technology in its photo storage app and failed to delete photos when users deactivated their accounts. The settlement requires Everalbum to obtain express consent before using facial recognition, delete user photos and derived face embeddings, and delete developed models and algorithms. It also prohibits misrepresentations about data practices and requires consent for biometric data use if marketing software to consumers.
Everalbum must delete photos and videos of users who deactivated accounts, delete face embeddings from non-consenting users, and delete any facial recognition models or algorithms developed with user content. It must obtain express consent before using facial recognition technology and is prohibited from misrepresenting its data collection, use, and deletion practices.
In-house legal teams should review vendor, customer, and data processing agreements for clauses related to biometric data processing, facial recognition features, and data retention/deletion obligations. Specifically, examine consent mechanisms for sensitive technologies, data deletion requirements upon account termination, and representations about data practices. Updates may be needed to mandate express opt-in consent for facial recognition, enforce deletion of both user content and derived models/embeddings, and revise privacy policies to prevent deceptive statements about data handling.
Entity
Everalbum, Inc.
Also known as: Everalbum
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/01/california-company-settles-ftc-allegations-it-deceived-consumers-about-use-facial-recognition-photo
everalbum order
https://www.ftc.gov/system/files/documents/cases/everalbum_order.pdf
everalbum complaint
https://www.ftc.gov/system/files/documents/cases/everalbum_complaint.pdf
updated final chopra statement on everalbum for circulation
https://www.ftc.gov/system/files/documents/public_statements/1585858/updated_final_chopra_statement_on_everalbum_for_circulation.pdf
everalbum inc analysis of proposed consent order to aid publ
https://www.federalregister.gov/documents/2021/01/25/2021-01430/everalbum-inc-analysis-of-proposed-consent-order-to-aid-public-comment
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Everalbum, Inc."
"Everalbum allegedly enabled facial recognition by default for all mobile app users"
"Everalbum promised users that the company would delete the photos and videos of Ever users who deactivated their accounts. The FTC alleges, however, that until at least October 2019, Everalbum failed to delete the photos or videos"
"Everalbum combined millions of facial images that it extracted from Ever users’ photos with facial images that Everalbum obtained from publicly available datasets to create four datasets for use in the development of its facial recognition technology."
The FTC rescinded its 2021 Policy Statement on Breaches by Health Apps and Other Connected Devices, which had purported to apply the Health Breach Notification Rule to health apps and connected devices that collect consumer health information. The rescission follows the Commission's 2024 update to the Health Breach Notification Rule, which already covers health apps and connected devices like fitness trackers, and implements an executive order directing agencies to eliminate obsolete guidance documents. No company was charged or penalized; this is a deregulatory action.
$12.0M
The FTC alleged that payment processor Humboldt Merchant Services knowingly processed payments for more than 1,000 shell merchant entities serving as fronts for fraudulent companies engaged in unauthorized billing scams, despite red flags including chargeback rates nearly 10 times higher than card-brand thresholds. Under the proposed stipulated order filed in the U.S. District Court for the Eastern District of Michigan, Humboldt will pay $12 million for consumer redress and is permanently banned from processing payments for merchants with a heightened risk of potential fraud.
$4.8M
The FTC charged Canada-based payment processor Nuvei Corporation and its subsidiaries with knowingly processing payments for fraudulent merchants, including more than $30 million in payments for the Reimage tech support scam from 2017 to 2023, as well as merchants making false earnings claims and impersonating government tax authorities. Under the stipulated order filed in the U.S. District Court for the District of Arizona, Nuvei will pay $4.85 million for consumer redress, is banned from serving tech support telemarketers, and must implement robust merchant screening and chargeback monitoring practices. Note: this is a payments-fraud facilitation action under the FTC Act and Telemarketing Sales Rule, not a data privacy violation.
The FTC announced a seven-day extension of the public comment period on its proposed enforcement policy statement regarding personalized pricing, pushing the deadline from Sept. 18, 2026 to Sept. 25, 2026. Personalized pricing refers to using personal data to set prices based on what the company believes an individual consumer is willing to spend. This is a procedural announcement about draft agency guidance, not an enforcement action against any company, and no entity was named, no violation found, and no penalty imposed.
Colorado Attorney General Phil Weiser joined the FTC and 22 state attorneys general in filing a lawsuit against Amazon for manipulating the auctions used to set advertising prices, replacing actual auction results with higher prices since 2019 and overcharging nearly 1.2 million U.S. advertising customers. The FTC estimates total improper surcharges from 2018 to 2026 exceed $20 billion, with costs ultimately passed to shoppers through higher prices. The states seek a permanent injunction and monetary relief; no penalty has been imposed yet as this is a newly filed complaint.
$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.