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.
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.
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.
Entity
GoDaddy
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/05/ftc-finalizes-order-godaddy-over-data-security-failures
ftc takes action against godaddy alleged lax data security i
https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-takes-action-against-godaddy-alleged-lax-data-security-its-website-hosting-services
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"GoDaddy"
"misled consumers by failing to implement data security protections, which led to several data breaches."
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
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The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.