The FTC finalized an order with GoDaddy for failing to implement adequate data security measures and misleading consumers about its security and Privacy Shield compliance. The order prohibits misrepresentations, requires a comprehensive security program, and mandates independent assessments.
GoDaddy must stop making false security claims, establish and implement a comprehensive information-security program, and hire an independent third-party assessor to review the program.
In-house legal teams should review all vendor, customer, and data processing agreements where GoDaddy acts as a service provider. Focus on clauses related to data security obligations, representations/warranties about security measures and compliance certifications (especially Privacy Shield), audit and assessment rights, and breach notification requirements. Contracts may need amendments to: (1) remove or qualify any broad security claims or references to specific certifications like Privacy Shield; (2) incorporate specific, actionable security requirements aligned with the order's mandate for a comprehensive program (e.g., MFA, threat monitoring); (3) grant the company rights to conduct or require independent security assessments; and (4) ensure breach notification terms are robust and consistent with the order's expectations.
Entity
GoDaddy
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/05/ftc-finalizes-order-godaddy-over-data-security-failures
ftc takes action against godaddy alleged lax data security i
https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-takes-action-against-godaddy-alleged-lax-data-security-its-website-hosting-services
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"GoDaddy"
"misled consumers by failing to implement data security protections, which led to several data breaches."
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$2.5B
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$225.0M
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$100.0M
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