GoDaddy to Settle FTC Charges of ‘Unreasonable Security Practices'

Core Points - The Federal Trade Commission (FTC) has proposed a settlement order requiring GoDaddy to enhance its information security program due to alleged failures in implementing adequate security measures and misleading customers about data protection [1][3][4] - GoDaddy has stated that it invests significant resources in data protection and has already begun implementing some requirements from the settlement agreement with the FTC [2][3] - The FTC's actions aim to ensure that web hosting companies like GoDaddy improve their security systems to protect consumers globally [2] Company-Specific Summary - GoDaddy is required to implement a comprehensive information security program and will be subject to independent third-party assessments to review its security measures [4] - The proposed settlement does not include any admission of fault or monetary penalties for GoDaddy, and the company expects minimal financial impact from compliance [3] - GoDaddy's alleged "unreasonable security practices" led to security breaches that exposed customer data and websites to unauthorized access [3] Industry Context - The FTC has previously taken similar actions against other companies, such as Marriott International, which was required to implement a comprehensive information security program following data breaches affecting over 344 million customers [5][6] - The FTC's focus on enhancing security measures across web hosting providers highlights the increasing importance of data protection for small businesses and their customers [2]