The Federal Trade Commission (FTC) has concluded an order with GoDaddy, addressing claims that the web hosting provider misled consumers by not implementing adequate data security measures. This shortcoming reportedly resulted in several data breaches.
In January 2025, the FTC alleged that GoDaddy did not uphold its claim of providing “award-winning security.” The company was accused of failing to implement standard security tools and practices necessary for safeguarding customer websites and data. Specifically, it did not employ multi-factor authentication, neglected to monitor for security threats, and failed to secure connections to consumer data. These oversights allowed unauthorized access to customer websites and information. Additionally, the FTC claimed that GoDaddy misled users about its compliance with the EU-U.S. and Swiss-U.S. Privacy Shield Frameworks.
The finalized order by the Commission imposes several requirements on GoDaddy:
- The company is prohibited from making false representations about its security or compliance with any privacy or security programs sponsored by a government or regulatory organization.
- It must establish and implement a comprehensive information-security program designed to protect the security, confidentiality, and integrity of its website-hosting services.
- An independent third-party assessor is required to conduct reviews of GoDaddy's information-security program.
The Commission received three comments on this matter before voting 3-0 in favor of finalizing the order and sending responses to these commenters. Commissioner Melissa Holyoak agreed but dissented on Count III in the complaint.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. The agency emphasizes that it will never request money, make threats, instruct individuals to transfer money, or promise prizes. For more information on consumer topics, visit consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov. Follow the FTC's updates through social media channels, consumer alerts, business blogs, and sign up for news alerts.
