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FTC Settles with Avast for $16.5M Over Deceptive Data Sales

AvastFebruary 1, 2024Federal Trade Commission

Penalty Amount

$16,500,000

Consumers Affected

3,690,813

Summary

The FTC settled with Avast for deceiving customers by claiming its antivirus software blocked tracking while secretly collecting and selling browsing data. Avast must pay $16.5 million in refunds and is banned from such practices. The FTC is now processing claims for affected consumers.

Remedy

Avast is required to pay $16.5 million to a refund fund, is permanently banned from selling or licensing browsing data for advertising purposes and from misrepresenting data practices, and must comply with other requirements.

Monetary PenaltyBan

Contract Impact

In-house legal teams should review all customer-facing agreements for antivirus/security software (end-user license agreements, terms of service) and vendor contracts where data is shared with third parties (e.g., analytics, advertising partners). Key clauses to scrutinize include: (1) data collection and use descriptions, ensuring they explicitly disclose if browsing data will be sold/licensed for advertising; (2) consent mechanisms, verifying they obtain affirmative, informed consent for such sales; (3) privacy policy representations, cross-checking marketing claims against permitted data practices; (4) data sharing permissions with subsidiaries or affiliates; and (5) data retention and deletion schedules. Changes may be needed to add clear, conspicuous disclosures about data sales, implement granular opt-out/opt-in consent, prohibit re-identification of data, and restrict advertising use of data from security products.

Contract Search Terms

browsing data sale clausethird-party data sharing agreementprivacy policy disclosure requirementsconsumer consent for data collectiondata processing addendumopt-out mechanism for data salesadvertising data licensingsoftware privacy noticere-identifiable data handlingsubsidiary data sharing

Violation Types

Entity Details

Entity

Avast

Industry

Technology

Official Sources

Source Evidence

Entity Name
"Avast"
Fine Amount
"pay $16.5 million"
Violation Types
"deceived users by claiming that its software would protect consumers’ privacy by blocking third party tracking, but it failed to adequately inform consumers that it would collect and sell their detailed, re-identifiable browsing data."
Event Date
"February 2024"

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