Avast is facing a fine of $16.5 million from the US Federal Trade Commission (FTC) after the FTC filed a complaint accusing the company of selling customer data to third parties.
The FTC alleges that Avast, which claimed to protect consumers online, actually collected and sold customer data without their knowledge or consent, deceiving them about the safety and usefulness of its products.
Founded in Czechoslovakia in the late 80s, Avast has grown to become a major player in the cybersecurity industry, offering antivirus software and forming partnerships with other cybersecurity companies.
The FTC’s complaint accuses Avast’s UK-based entity, through its Czech subsidiary Jumpshot, of selling data to third parties since at least 2014, despite claims of blocking tracking cookies and preventing online monitoring of users. Jumpshot was dissolved in 2020.
FTC claims that Avast has sold customer data to over a hundred organizations, including consulting firms, advertising companies, and data brokers, potentially revealing sensitive information such as personal interests, financial struggles, and political beliefs.
FTC Chairman Lina Khan stressed that browsing history can expose highly sensitive information, and called Avast’s actions deceptive and unfair, deserving stronger consumer privacy protections.
In addition to the fine, FTC has banned Avast from selling or licensing data for advertising purposes. Samuel Levin, director of the FTC consumer protection bureau, accused Avast of deceitfully claiming to protect user privacy while actually compromising it.
“Although we do not agree with the FTC’s claims and the interpretation of the events, we are glad to resolve this matter and continue serving millions of customers worldwide,” Avast stated.
While it is not confirmed if Avast actually traded customer data, the company would unlikely agree to pay a