Court Rules
All enforcement actions
SettlementCritical Risk

FTC Settles with Avast for $16.5M Over Deceptive Data Sales

AvastFebruary 1, 2024Federal Trade Commission

Penalty Amount

$16,500,000

Consumers Affected

3,690,813

Summary

The FTC settled with Avast for deceiving customers by claiming its antivirus software blocked tracking while secretly collecting and selling browsing data. Avast must pay $16.5 million in refunds and is banned from such practices. The FTC is now processing claims for affected consumers.

Remedy

Avast is required to pay $16.5 million to a refund fund, is permanently banned from selling or licensing browsing data for advertising purposes and from misrepresenting data practices, and must comply with other requirements.

Monetary PenaltyBan

Contract Impact

In-house legal teams should review all customer-facing agreements for antivirus/security software (end-user license agreements, terms of service) and vendor contracts where data is shared with third parties (e.g., analytics, advertising partners). Key clauses to scrutinize include: (1) data collection and use descriptions, ensuring they explicitly disclose if browsing data will be sold/licensed for advertising; (2) consent mechanisms, verifying they obtain affirmative, informed consent for such sales; (3) privacy policy representations, cross-checking marketing claims against permitted data practices; (4) data sharing permissions with subsidiaries or affiliates; and (5) data retention and deletion schedules. Changes may be needed to add clear, conspicuous disclosures about data sales, implement granular opt-out/opt-in consent, prohibit re-identification of data, and restrict advertising use of data from security products.

Contract Search Terms

browsing data sale clausethird-party data sharing agreementprivacy policy disclosure requirementsconsumer consent for data collectiondata processing addendumopt-out mechanism for data salesadvertising data licensingsoftware privacy noticere-identifiable data handlingsubsidiary data sharing

Violation Types

Entity Details

Entity

Avast

Industry

Technology

Official Sources

Source Evidence

Entity Name
"Avast"
Fine Amount
"pay $16.5 million"
Violation Types
"deceived users by claiming that its software would protect consumers’ privacy by blocking third party tracking, but it failed to adequately inform consumers that it would collect and sell their detailed, re-identifiable browsing data."
Event Date
"February 2024"

Related Enforcement Actions

FTC

Lens.com Inc.

The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.

FTC

Online platforms

The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.

FTC

Amazon.com, Inc.

$2.5B

A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.

FTC

Amway Corp.

$225.0M

The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.

FTC

FleetCor Technologies Inc. (now Corpay Inc.)

$100.0M

FleetCor Technologies Inc. (now Corpay Inc.) and its CEO Ronald Clarke agreed to pay $100 million to settle an FTC administrative action alleging the company charged small business customers hidden and unauthorized fees for fuel cards and misrepresented gas savings, fraud-control features, and fees. A federal district court granted the FTC summary judgment on all counts in 2023, and a federal appeals court upheld that judgment and the permanent injunction in 2026. The settlement funds will be used to provide redress to harmed business customers.

FTC

Automobile industry (auto dealers) - no named respondent; industry-wide guidance publication

FTC staff published FAQs on price transparency to help the automobile industry comply with the FTC Act, reiterating that an advertised vehicle price must be the actual price any consumer can pay, excluding only government-required charges. The guidance follows warning letters the FTC sent to 97 auto dealership groups earlier in 2026 and signals continued litigation against dealers that advertise one price but charge more through undisclosed fees. No specific entity was charged and no penalty was imposed.