Penalty Amount
$500,000
The FTC took action against CafePress for failing to secure consumer data and covering up a major data breach. The company stored sensitive information insecurely and delayed notifying customers. As part of the settlement, Residual Pumpkin must pay $500,000 in redress, and both companies must implement comprehensive security programs.
The settlement requires Residual Pumpkin to pay $500,000 to compensate affected small businesses. Both companies must implement comprehensive information security programs, including multi-factor authentication and data minimization. They must also notify affected consumers and undergo third-party security assessments.
In-house legal teams should review all agreements involving the handling of consumer or small business data, including vendor contracts (especially IT/cloud service providers), customer terms of service, and data processing addendums. Focus on clauses governing data security obligations, breach notification timelines (including requirements to notify customers and regulators), data storage/encryption standards, audit rights to verify security practices, and indemnification provisions for data breaches. Given the FTC's order requiring specific controls like multi-factor authentication and comprehensive security programs, contracts may need amendments to mandate these technical safeguards, establish regular security assessments, clarify redress mechanisms for affected parties, and potentially adjust liability caps to reflect heightened security responsibilities.
Entity
Residual Pumpkin Entity, LLC and PlanetArt, LLC
Also known as: CafePress
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-takes-action-against-cafepress-data-breach-cover
CafePress Complaint 0
https://www.ftc.gov/system/files/ftc_gov/pdf/CafePress-Complaint_0.pdf
Residual Pumpkin Agreement Containing Consent Order
https://www.ftc.gov/system/files/ftc_gov/pdf/Residual%20Pumpkin%20Agreement%20Containing%20Consent%20Order.pdf
PlanetArt Agreement to Containing Consent Order 0
https://www.ftc.gov/system/files/ftc_gov/pdf/PlanetArt%20Agreement%20to%20Containing%20Consent%20Order_0.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Residual Pumpkin Entity, LLC, the former owner of CafePress, and PlanetArt, LLC, which bought CafePress in 2020"
"Residual Pumpkin to pay $500,000 in redress to victims of the data breaches"
"CafePress employed careless security practices and concealed multiple breaches from consumers."
$500K
The FTC settled with CafePress's former owner Residual Pumpkin Entity, LLC and buyer PlanetArt, LLC over data security failures that led to a breach exposing Social Security numbers and other sensitive data. Residual Pumpkin paid $500,000 for victim compensation, and both companies must implement comprehensive security programs. A claims process is open for affected consumers until March 10, 2024.
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.
$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.