Penalty Amount
$370,000
Consumers Affected
20,044
The FTC settled with CafePress for failing to implement reasonable data security measures, leading to multiple breaches that exposed Social Security numbers and other sensitive data. As part of the settlement, over $370,000 in refunds are being distributed to 20,044 consumers who filed valid claims.
The FTC is sending payments totaling more than $370,000 to 20,044 consumers who filed a valid claim before the deadline, via checks and PayPal.
In-house legal teams should review vendor agreements, customer contracts, and any data processing agreements (DPAs) that involve the handling of sensitive personal data (e.g., Social Security numbers). Focus on clauses addressing data security obligations, data retention limits, and breach notification requirements. Specific changes may include: mandating encryption for sensitive data at rest and in transit; implementing clear data minimization and retention schedules; requiring prompt breach notification to affected individuals and regulators (e.g., within 72 hours); and adding provisions for regular security audits and vulnerability assessments. Contracts should also prohibit storing sensitive data in clear, readable text and require reasonable access controls.
Entity
CafePress
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-sends-refunds-consumers-harmed-cafepresss-data-security-failures
ftc takes action against cafepress data breach cover
https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-takes-action-against-cafepress-data-breach-cover
ftc announces claims process consumers affected cafepresss d
https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-announces-claims-process-consumers-affected-cafepresss-data-security-failures
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"CafePress"
"CafePress failed to implement reasonable security measures to protect the sensitive information stored on its network. In addition to storing Social Security numbers and password reset answers in clear, readable text, CafePress retained the data longer than was necessary. As a result of its shoddy security practices, CafePress’ network was breached multiple times allowing hackers to access sensitive user data including Social Security numbers. The company also failed to adequately inform consumers about these breaches."
"20,044 consumers"
$500K
The FTC finalized an order against CafePress for failing to secure consumer data and covering up a data breach. The company must implement comprehensive security measures, and its former owner must pay $500,000 in redress to victims.
$2.0M
New Jersey joined a multistate $2 million settlement with online retailer CafePress over a 2019 data breach that exposed personal information of approximately 22 million consumers nationwide, including over 540,000 in New Jersey. The settlement requires CafePress to implement a comprehensive cybersecurity program, incident response plan, and third-party assessments for five years, with payment suspended pending compliance.
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.
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.
$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.
$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.