FTC Offers Refunds to Avast Customers Impacted by Privacy Misleading Practices
In a significant move to address deceptive marketing practices, the Federal Trade Commission (“FTC”) has begun notifying consumers who were affected by misleading claims made by antivirus software company Avast. The FTC’s investigation revealed that Avast misrepresented the privacy protections offered by its software, leading to a settlement that will result in compensation for impacted users.
The core issue centers around Avast’s claims that its antivirus software would block third-party tracking to protect user privacy. However, the FTC found that while making these claims, Avast failed to fully disclose that it was, in fact, collecting and selling detailed, re-identifiable browsing data. This data was sold to more than 100 third-party companies through Avast’s subsidiary, Jumpshot.
As part of a settlement, Avast has agreed to pay $16.5 million, which will go toward compensating consumers who were misled by these claims. The settlement also mandates that Avast cease making false statements about how it collects and uses data, and prohibits the company from selling or licensing browsing data from Avast-branded products to third parties for advertising purposes in the future.
This refund initiative is an important reminder to businesses about the significance of transparency in privacy-related claims. As the digital landscape continues to evolve, maintaining trust through clear and honest communication about data usage is paramount.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.