WASHINGTON, D.C. — The Federal Trade Commission (FTC) has reached a settlement with GoDaddy, requiring the web hosting giant to implement a robust information security program after alleged security lapses led to multiple data breaches and misled customers about its protective measures.
According to the FTC’s complaint, GoDaddy failed to implement reasonable security practices since 2018, leaving its website-hosting environments vulnerable to cyberattacks. These deficiencies allegedly resulted in major security breaches between 2019 and 2022, during which bad actors gained unauthorized access to customers’ websites and exposed visitors to malicious threats.
“Millions of companies, particularly small businesses, rely on web hosting providers like GoDaddy to secure the websites that they and their customers rely on,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC is acting today to ensure that companies like GoDaddy bolster their security systems to protect consumers around the globe.”
The Commission also accused GoDaddy of misleading customers about its security protocols, as well as its compliance with the EU-U.S. and Swiss-U.S. Privacy Shield Frameworks, which require adequate measures to safeguard personal data.
Under the proposed settlement, GoDaddy must establish a comprehensive information-security program aimed at protecting the integrity, confidentiality, and security of its services. The order further prohibits the company from making deceptive claims about its security or compliance with privacy standards. GoDaddy will also be required to hire an independent third-party assessor to review its security program both initially and on a biennial basis.
GoDaddy operates as one of the world’s largest web hosting providers, serving five million customers globally. The FTC’s action exemplifies its efforts to enforce stricter accountability for businesses entrusted with the security of consumer data. This settlement serves as a reminder to companies in similar sectors to prioritize robust security measures to protect against growing cybersecurity threats.
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