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FTC Settles with GoDaddy Over Data Security Failures

GoDaddy Inc. and GoDaddy.com, LLCMay 21, 2025Federal Trade Commission

Summary

The FTC settled charges against GoDaddy Inc. and GoDaddy.com, LLC for misleading customers about their data security protections and failing to adequately secure their website hosting services. The company allegedly did not implement reasonable security measures, leaving customer websites vulnerable to attacks that could harm both the customers and visitors to those sites. The case resulted in a consent order requiring GoDaddy to improve its security practices.

Contract Impact

In-house legal teams should review all vendor and customer agreements where GoDaddy provides website hosting or related services. Specifically examine clauses covering security representations, warranties, and standards; audit and inspection rights; breach notification procedures; indemnification terms related to security incidents; and limitations of liability for data breaches or service vulnerabilities. Given the FTC's findings, contracts must accurately reflect the actual security practices and avoid overpromising protections. Consider adding or strengthening requirements for vulnerability testing, patch management, and customer-specific security controls, and ensure breach notification timelines align with regulatory expectations. Updates may be needed to align with the consent order's mandated security program improvements.

Contract Search Terms

security representations and warrantiessecurity measures clauseaudit rightsbreach notification clauseindemnification for security failuresservice level agreement securitydata protection addendumvulnerability management programincident response planlimitation of liability security

Violation Types

Entity Details

Entity

GoDaddy Inc. and GoDaddy.com, LLC

Also known as: GoDaddy

Industry

Technology

Official Sources

Source Evidence

Entity Name
"In the Matter of GoDaddy Inc., a corporation, and GoDaddy.com, LLC, a limited liability company."
Violation Types
"Case settles charges that GoDaddy misled customers about the extent of its data security protections and failed to secure its website hosting services against attacks that could harm its customers and visitors to the customers' websites."
Remedy Types
"Agreement Containing Consent Order"

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