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Chronicles

The story behind the story

days · browse · Enter similar · o open

Avast will shut down its marketing subsidiary Jumpshot following controversy over selling user data to third parties

Avast's CEO said the move is “absolutely the right thing to do.”  —  Avast is winding down its subsidiary Jumpshot following an explosive investigation into the sale …

ZDNet Charlie Osborne

Context & Ripple Effects

The shutdown is the endgame of a two-month unraveling. Avast had already been forced to explain how it monetized users' browsing habits since 2013 after Mozilla and Opera pulled its tools from their add-on stores, and days before the closure, documents showed browsing data flowing to clients like Pepsi, Google, and Microsoft through Jumpshot. Killing the subsidiary is the CEO's attempt to contain the reputational damage to Avast's core antivirus business.

What makes the story bigger than one product line is the dependency chain: Hitwise, a 24-year-old consumer insights firm, collapsed weeks later after allegations it had purchased sensitive user data from Jumpshot — evidence the shutdown didn't just end Avast's data business but took a buyer down with it. Four years on, the FTC's $16.5M settlement barring Avast from selling browsing data for ads confirmed the closure was damage control, not absolution.

First-order effects

  • Avast immediately loses the Jumpshot revenue stream and its named clients — Pepsi, Google, Microsoft among them — lose a source of clickstream data they had been buying since 2013.

Second-order effects

  • Data brokers dependent on Jumpshot's feed face the same exposure: Hitwise's shutdown within three weeks shows that a tainted supply chain can kill the downstream buyer, not just the seller.
  • Browser and add-on store gatekeepers like Mozilla and Opera, which had already removed Avast tools, are validated in treating telemetry-harvesting extensions as a category risk rather than a case-by-case call.

Third-order effects

  • The arc from press investigation to subsidiary shutdown to a four-years-later FTC order shows that winding down the operation doesn't extinguish liability — freemium security vendors' data monetization is now a regulatory target, and 'we shut it down' is no defense against misrepresentation charges.

The trend: Security vendors that treated user telemetry as a secondary revenue line are being pushed out of the data-brokerage business by a press-exposure-then-regulator sequence that now defines the sector's privacy risk.

Discussion

  • @ron_n Ron Nussey on x
    New post from Avast CEO “For these reasons, I - together with our board of directors - have decided to terminate the Jumpshot data collection and wind down Jumpshot's operations, with immediate effect.” https://blog.avast.com/... cc @larakiara @josephfcox @swodinsky
  • @malwaretechblog @malwaretechblog on x
    The only thing companies care about more than money is c̷u̷s̷t̷o̷ m̷e̷r̷ ̷p̷r̷i̷v̷ a̷c̷y̷ share prices (money). https://twitter.com/...
  • @avast_antivirus Avast on x
    The security and privacy of our users worldwide is Avast's priority. Read our blog post on Avast's commitment to responsible data use ➢ https://blog.avast.com/... https://twitter.com/...
  • @josephfcox Joseph Cox on x
    After our investigation Avast has published a blog post defending its sale of users' browsing data, but adds it will “continue to consider how a trends analytics service aligns with our values as a cybersecurity and privacy company.” https://blog.avast.com/... https://twitter.com…
  • @laurenjohnson Lauren Johnson on x
    Avast is shutting down analytics firm Jumpshot over selling web tracking data to brands https://press.avast.com/.... Cannes parent co Ascential also says that it's selling back its 35% stake after valuing Jumpshot at $173 million in July: https://www.businessinsider.com/ ...
  • @dhh @dhh on x
    Avast will no longer sell the data on “every click, every visit, every sale” that they plundered from unsuspecting users of their antivirus program. CEO is sorry for “hurt feelings” and thankful for “feedback” 🤯. Sunshine journalism works. Pressure works. https://blog.avast.com/.…
  • @joshuatopolsky Joshua Topolsky on x
    Countdown to avast going out of business https://twitter.com/...
  • @gossithedog Kevin Beaumont on x
    Here's the latest on the AVAST saga. There is an elephant in the room in cybersecurity industry, and that is transparency about telemetry. My feeling - don't sell the data, and be transparent as possible about usage. https://twitter.com/...
  • @sosowski Sos Sosowski on x
    That's a good reaction, but this should never happen. (tl;dr Avast Antivirus was selling data including user mouse clicks to third parties for $$$). Between Avast, CCleaner and Kaspersky, I have less and less trust towards any closed source software. https://twitter.com/...
  • @joshis_tweets Petr Dvorak on x
    A message to @avast_antivirus CEO @AvastVlk: You made the best decision you could have made. 👏https://blog.avast.com/ ...
  • @martijn_grooten Martijn Grooten on x
    Avast decides to shut down Jumpshot, which is pretty much the only thing they could do https://blog.avast.com/... Pro-tip: if your company has grown pretty large, hire some privacy expert(s) to assess the privacy impact of the various things you do, before @josephfcox finds out
  • @edbott Ed Bott on x
    Alexa, show me what a guilty party does when they get caught. https://twitter.com/...
  • @dylanljmartin Dylan Martin on x
    Props to @motherboard and @PCMag for the investigation that led to this. Pretty swift action. https://twitter.com/...
  • @iblametom Thomas Brewster on x
    It's a serious reversal from Avast. It has even bought back the 35% share of Jumpshot (its data selling subsidiary) it sold to Ascential in order to shut it down... It's ditching tens of millions of yearly revenue in the process. https://twitter.com/...
  • @mikko @mikko on x
    After stock drops by 20% on privacy violation news, the company reacts by shutting down their subsidiary that was selling the usage data. https://twitter.com/...
  • @wolfiechristl Wolfie Christl on x
    So, Avast claims it will stop selling user data and their CEO states ‘I feel personally responsible’. Anyway, if they didn't already, the Czech DPA must urgently start an investigation about Avast's past and future data practices. https://www.forbes.com/...
  • @clipperchip Garach Jedao Shkan on x
    Calling your product a scam is actually an understatement. It is malware. https://twitter.com/...