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In a decisive move to protect consumer privacy, the Federal Trade Commission (FTC) announced a prohibition on Antivirus provider Avast selling users’ web browsing data for advertising purposes. This decision emerged after Avast’s claims of protecting users against online tracking stood counter to their actions.
The company has also reached a financial settlement with the FTC, amounting to $16.5 million. This sum is intended as compensation for Avast consumers whose intimate web browsing details were inappropriately marketed to large ad agencies and data brokerage firms.
Samuel Levine, director of the consumer protection bureau at the FTC, said Thursday that “Avast advertised that its products would secure users’ browsing information privacy, yet they did the complete opposite.” Levine added, “Avast engaged in deceptive surveillance strategies that both infringed on consumer privacy and violated legal boundaries,” alluding to the statement found here.
The FTC reported that Avast gathered comprehensive data on customers’ digital behavior, accumulating records of web searches and site visits through Avast’s browser add-ons. These tools were supposedly designed to protect privacy by obstructing tracking cookies.
Contrary to its privacy assurance, Avast, through its former division Jumpshot, reportedly distributed the browsing information to an array of companies, thereby generating many millions of dollars in profits.
According to the regulator, the data Jumpshot marketed revealed sensitive personal information, such as consumers’ religious affiliations, health issues, political stances, geographical data, and more.
Back in January 2020, an investigative endeavor by Vice News and PCMag exposed that Jumpshot was engaging in the trade of comprehensive web browsing data to various clients, such as Google and Microsoft, including precise details about user clicks.
Avast’s user base reportedly exceeded 430 million globally at that time. Jumpshot claimed it had access to data from 100 million devices.
Following the investigative report by Vice and PCMag, Avast promptly discontinued its Jumpshot subsidiary.
The Avast-NortonLifeLock merger in 2021 culminated in a transaction valued at $8.1 billion, aligning Avast with parent corporation Gen Digital, which also holds the CCleaner utility application in its portfolio.
A Gen Digital representative, Jess Monney, responded with comments from the firm on Thursday, indicating: “Avast had voluntarily ended Jumpshot in 2020, thus discontinuing these practices prior to the FTC settlement. The settlement’s operational terms align with Avast’s extant practices concerning privacy and security.”
Though Avast challenged the federal allegations and their depiction of the situation, specifics were not provided. Nevertheless, the company expressed contentment with the resolution of this matter.
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FAQ About FTC’s Action Against Avast
Q: Why has the FTC banned Avast from selling user data?
A: The FTC has instituted this ban because Avast was found to be selling user browsing data in contradiction to its promises to protect users’ privacy from online tracking.
Q: What was the nature of the data sold by Avast?
A: The data sold by Avast included detailed information on users’ web searches, site visits, and clicks, which revealed personal details like health concerns, political leanings, and religious beliefs.
Q: How much has Avast settled with the FTC for?
A: Avast has settled with the FTC for $16.5 million, which is designated as compensation for the affected users.
Q: Has Avast accepted fault in the situation?
A: Avast has disputed the FTC’s allegations and their characterization of the facts but has not provided a detailed explanation. Nonetheless, Avast has shown satisfaction in reaching a settlement.
Q: What will happen with Avast now?
A: Avast, which is now part of Gen Digital, has stated that it has already ceased the practices in question and that the terms of the settlement are in line with its current privacy and security programs.
Conclusion
The FTC’s enforcement action against Avast signifies a strong stance on safeguarding consumer privacy rights. The ban and subsequent settlement highlight the importance of companies being transparent and trustworthy in how they handle user data. While Avast disputes the allegations levied against it, the resolution of this matter serves as a cautionary tale for businesses about the grave consequences of misleading consumers, emphasizing the necessity to uphold ethical standards in data privacy and cybersecurity.
