
The Federal Trade Commission (FTC) has taken action against GoDaddy, holding the company accountable for its inadequate security practices in its hosting services. The complaint filed by the FTC asserts that GoDaddy has portrayed itself as a secure option for customers, making claims about its commitment to data security and its monitoring practices across various platforms, including their main hosting website and marketing materials.
However, the FTC found that GoDaddy’s security measures did not align with these claims. It highlighted that the company’s data security program was insufficient, especially given GoDaddy’s size and the complexity of its operations. According to the FTC, GoDaddy ignored significant vulnerabilities and threats present in its hosting environment. Since 2018, the company has allegedly violated Section 5 of the FTC Act by failing to implement standard security practices necessary for protecting customer websites and data. Specific shortcomings included inadequate asset management, insufficient monitoring for security threats, lack of multi-factor authentication, and failure to conduct risk assessments among others. These failures led to misleading representations about the company’s security capabilities.
The FTC also pointed out several data breaches that happened between 2019 and 2022, underscoring the inadequacy of GoDaddy’s security measures during those instances.
In response, GoDaddy has agreed to a consent order with the FTC, which will impose several requirements on the company. The agreement will forbid GoDaddy from misrepresenting its data security efforts and compliance with privacy programs. Additionally, it mandates the establishment of a comprehensive information-security program to safeguard its web-hosting services. An independent third-party assessor will also conduct initial and biennial reviews of GoDaddy’s security framework to ensure compliance with the new standards set forth by the FTC.
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