Yahoo Finance Market report: Antivirus firm Avast dives as it admits selling users’ data
Shares in Avast tanked today after reports emerged that the antivirus firm had been flogging users’ data to giants like IBM, L’Oréal and Expedia.
Avast scraped data from the software it provides to customers and handed the information to marketing subsidiary Jumpshot, which then repackaged the information and sold it for millions of dollars.
While Avast required users to opt in to this data sharing, the investigation found many were unaware Jumpshot was then selling on their data. The revelations emerged late yesterday following a joint investigation by trade publications Motherboard and PCMag.
The data sold includes Google searches, Google Maps location searches, activity on companies’ LinkedIn pages, YouTube visits and data on people visiting porn websites.
Avast, headquartered in the Czech Republic, bought US marketing company Jumpshot in 2013. The firm tracks what website users visit, when they visited them and on what device. The allegations also raise questions whether Avast broke GDPR rules, regulations introduced to give individuals control over their personal data.
Avast did not deny the allegations and said it had moved to stop the data-sharing practices. The company said: “In December 2019, we acted quickly to meet browser store standards and are now compliant with browser extension requirements for our online security extensions.
“At the same time, we completely discontinued the practice of using any data from the browser extensions for any other purpose than the core security engine, including sharing with our subsidiary Jumpshot.”
Avast shares lost 46p to 436p.
In the top flight the FTSE 100 was up for a second straight session, 9.38 points to 7490.07.
Private equity firm 3i was the top riser after analysts at Morgan Stanley upgraded the stock. The firm has performed well over the past 12 months and the US bank believes there is more share price growth to come.
Further down the league table Pendragon fell 0.4p to 11.2p after the car dealership chain warned annual profit would be around the bottom end of its expectations as demand weakened in the run-up to the December election.
Builders’ merchant Travis Perkins was another notable riser, up 29p to 1599p. The firm reported solid fourth-quarter sales at subsidiary Wickes, following an uptick in DIY activity over the Christmas period.
Travis Perkins said last July it was planning to spin off the Wickes business.
