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Consent DecreeLow Risk

FTC Orders GoDaddy to Overhaul Data Security After Misleading Claims

GoDaddyMay 21, 2025Federal Trade Commission

Summary

The FTC finalized an order with GoDaddy for failing to implement adequate data security measures and misleading consumers about its security and Privacy Shield compliance. The order prohibits misrepresentations, requires a comprehensive security program, and mandates independent assessments.

Remedy

GoDaddy must stop making false security claims, establish and implement a comprehensive information-security program, and hire an independent third-party assessor to review the program.

InjunctionCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review all vendor, customer, and data processing agreements where GoDaddy acts as a service provider. Focus on clauses related to data security obligations, representations/warranties about security measures and compliance certifications (especially Privacy Shield), audit and assessment rights, and breach notification requirements. Contracts may need amendments to: (1) remove or qualify any broad security claims or references to specific certifications like Privacy Shield; (2) incorporate specific, actionable security requirements aligned with the order's mandate for a comprehensive program (e.g., MFA, threat monitoring); (3) grant the company rights to conduct or require independent security assessments; and (4) ensure breach notification terms are robust and consistent with the order's expectations.

Contract Search Terms

data security programmisrepresentation clausePrivacy Shield certificationindependent security assessormulti-factor authentication requirementbreach notificationaudit rightscustomer data protectionsecurity representationscompliance with government-sponsored programs

Violation Types

Entity Details

Entity

GoDaddy

Industry

Technology

Official Sources

Source Evidence

Entity Name
"GoDaddy"
Violation Types
"misled consumers by failing to implement data security protections, which led to several data breaches."

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