On February 1, 2024, the Federal Trade Commission announced a complaint and proposed consent order against Blackbaud, Inc. concerning a 2020 data security incident that included a ransomware demand and payment. According to the FTC’s complaint, Blackbaud’s allegedly unfair and misleading conduct included not just deficient data security practices but also a delay in providing accurate notice to its business customers about the breach, including the inclusion of deceptive statements about the scope and severity of the breach in its initial notice to those customers.

The FTC highlighted that this case is the first time it has brought standalone Section 5 unfairness claims arising out of the alleged failure to (1) implement and enforce reasonable data retention practices and (2) accurately communicate the severity and scope of the breach.

Read the full Update here.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Erin K. Earl Erin K. Earl

Erin Earl defends companies in high-stakes privacy and security litigation and government agency investigations, including inquiries from the Federal Trade Commission (FTC) and state attorneys general.

Photo of Amelia M. Gerlicher Amelia M. Gerlicher

Amelia Gerlicher focuses her practice in the areas of privacy and data security, counseling clients on preparing for and reacting to data breaches and network intrusions, as well as helping clients assess and address the privacy and data security risks that arise from…

Amelia Gerlicher focuses her practice in the areas of privacy and data security, counseling clients on preparing for and reacting to data breaches and network intrusions, as well as helping clients assess and address the privacy and data security risks that arise from a wide range of commercial activities.

Photo of Janis Kestenbaum Janis Kestenbaum

Janis Kestenbaum is a partner in the Privacy & Security practice and Advertising, Marketing & Promotions industry group. Janis represents companies under investigation by the Federal Trade Commission (FTC), state attorneys general, congressional committees, and foreign data protection authorities regarding privacy, data security…

Janis Kestenbaum is a partner in the Privacy & Security practice and Advertising, Marketing & Promotions industry group. Janis represents companies under investigation by the Federal Trade Commission (FTC), state attorneys general, congressional committees, and foreign data protection authorities regarding privacy, data security, and consumer protection issues.

Photo of Oviett Wargula Oviett Wargula

Oviett graduated cum laude from Seattle University School of Law, where she served as an editor of the Seattle Journal of Technology, Environmental, and Innovation Law.