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ARTICLE · 23 MARCH 2022

FTC Reminds CafePress That There Are Consequences For Data Breach (In)actions

The Federal Trade Commission (FTC) accepted a proposed consent agreement earlier this week that includes payment of $500,000 for consumer redress from CafePress, an online platform...

United StatesPrivacy

The Federal Trade Commission (FTC) accepted a proposed consent agreement earlier this week that includes payment of $500,000 for consumer redress from CafePress, an online platform allowing consumers to purchase customized merchandise from other consumers or "shopkeepers", arising from CafePress's alleged failures to prevent, report, investigate, and remedy multiple data breaches.   

The Allegations in the Complaint

The FTC's complaint asserts that the former owner of CafePress, Residual Pumpkin Entity, LLC, and its current owner, PlanetArt, LLC, maintained substandard security practices and failed to adequately protect consumer data, despite deceptively representing that its websites incorporated adequate safeguards to keep consumer's confidential information "safe and secure." Those failures were exploited by a hacker in February 2019, who ultimately accessed more than twenty million unencrypted email addresses and encrypted passwords, millions of

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