The Federal Trade Commission (FTC) is imposing a $16.5 million penalty on Avast, a cybersecurity software company, for allegedly selling consumer data to third parties. The complaint filed by the agency accuses the company of collecting and selling customers’ browsing data without their knowledge or consent, thereby breaching their trust.
Established in the late 1980s in the former Soviet’s bloc, Czechoslovakia, the company developed over time, adding antivirus software to its portfolio. It expanded its reach through public listings and mergers with other companies in the cybersecurity industry. Today, Avast operates as one of several brands under the umbrella of Gen Digital, a publicly traded entity headquartered in both Tempe, Arizona, and Prague, Czech Republic.
In the FTC’s complaint, it is stated that Avast Limited, with a base in the UK and a subsidiary in the Czech Republic, deceived consumers by claiming it blocked tracking cookies only to then sell that user data. The accusation points out that the company has been indulging in such practices since at least 2014.
FTC chair, Lina Khan, highlighted that a person’s internet history could reveal highly sensitive information and underscored the need for heightened protection for browsing data. Khan labeled Avast’s conduct both deceptive and an unfair practice.
According to the FTC, Avast had over 100 clients it sold data to, comprising consulting firms, advert companies, and data brokers. Aside from the considerable monetary fine, the FTC has also imposed a ban preventing Avast from selling or licensing data for advertising uses.
Samuel Levine, Director of FTC’s Bureau of Consumer Protection, criticized Avast’s bait-and-switch surveillance tactics. Avast, on the other hand, commented that while it disagreed with the FTC’s allegations, it is satisfied to settle the matter and will continue serving its customer base worldwide. The company confirmed its settlement with the FTC centered around its Jumpshot subsidiary, which Avast voluntarily closed in January 2020.
