
Website security best practices: HTTPS and open paths
At a glance
US-15Low15 U.S.C. §45; state security-safeguard statutes
Peeky checks that your connection is encrypted and whether well-known sensitive folders and files answer from outside.
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The rule
The United States has no single website security statute. The federal rule that reaches a company’s website is section 5 of the FTC Act, and it does not mention encryption, headers or file paths. The FTC builds the expectation case by case.
Section 45(a)(1) declares “unfair or deceptive acts or practices in or affecting commerce” unlawful. Section 45(n) limits the unfairness half: the Commission may not declare an act or practice unfair “unless the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.”
So a security case under section 5 rests on three things: injury or likely injury to consumers, that consumers could not reasonably avoid, and a balance against the benefits. Security can also be handled as deception, when a company tells consumers its security is better than it is. The GoDaddy allegations below pair a security claim with the failures alleged behind it.
Whether the FTC can use unfairness for security at all was tested in court. The FTC’s own account of the Third Circuit’s ruling in FTC v. Wyndham, of 25 August 2015, says the court “upheld” that the FTC could use the prohibition on unfair practices in section 5 to challenge the data security lapses alleged, and rejected Wyndham’s argument that it lacked notice.
What the FTC expects in practice is in its guidance. “Start with Security” tells businesses to “use strong cryptography to secure confidential material during storage and transmission”, and names Transport Layer Security (TLS) encryption as one possibility. A lesson on configuration describes companies that used SSL encryption in their mobile apps but “turned off a critical process”, which made the apps open to interception. Another lesson, on access, describes a company that stored consumer information on a server on which it had disabled the firewall. The guide does not mention security headers, and nothing the FTC published that was read for this page names them.
The orders in the cases below require a security program and independent assessments, and one proposed order carried a payment for refunds. State laws add their own security duties and differ from state to state. This page covers the federal layer. Of the state statutes, only New York’s General Business Law section 899-bb was read for it.
What PeekWell checks and how
US-15 asks two questions that a visitor’s browser can answer: is the connection encrypted and set up in the usual way, and do a few well-known sensitive paths answer from outside?
The scan is automated. The first half is the same as EU-15 and UK-15. It opens a public page the way an ordinary browser does and looks at the encryption on the connection, any part of the page that loads over plain http, and security headers such as HSTS, Content-Security-Policy and X-Frame-Options.
The second half is specific to this check. It asks whether a few things that should never be public answer from outside, such as a source-control folder, an environment file, a backup or an open folder listing. That’s all it notes. It never opens, reads or keeps what comes back, and an answer alone doesn’t say what is there or whether it matters. The report states an observation, not a conclusion.
The scan has limits, and the report says so. It reads public pages and, for the path check, whether a short list of addresses answers. It does not port-scan, try to get in where it isn’t allowed or run any security test. It does not try to get past a login, guess at other addresses, or read the content of anything. It cannot see how data is stored or who inside the company can reach it. A Passed means the expected behaviour was observed on what was scanned. It does not say the site complies.
Why it matters for a company
For the FTC, the facts in these cases are not subtle. In several of them a file or a connection was reachable by anyone.
In the 2015 settlements with two debt brokers, Cornerstone and Company and Bayview Solutions, the FTC alleged that the companies posted unencrypted documents on a website geared for debt buyers, sellers and others in the industry, “but accessible to anyone with an internet connection”. The files held names, addresses, card and bank account numbers and amounts consumers allegedly owed, for about 55,000 consumers. The settlements require a security program, with assessments by an independent party at the start and every two years.
In the GoDaddy matter, finalized on 21 May 2025 by a 3-0 vote, the FTC alleged that the company claimed award-winning security while not using multi-factor authentication, not monitoring for threats and not securing connections to consumer data. The order bars misrepresenting security, requires a comprehensive security program and calls for an independent assessor. One commissioner concurred but dissented on one count.
A third example shows how long a gap can stay open. In June 2023 the FTC alleged that Vitagene, now 1Health.io, kept nearly 2,400 health reports and the raw genetic data of at least 227 consumers in unencrypted, publicly accessible cloud storage, and that over about two years it was told at least three times. The proposed order included $75,000 for consumer refunds.
For a company the practical points are these. The FTC’s pleadings treat “reachable by anyone” as a fact that can be shown. Telling customers your security is strong makes the gap a question about the claim as well as the control. And a warning that goes unanswered, as in the Vitagene allegations, is part of the story the FTC tells.
Smaller companies and larger companies
Section 5 has no size threshold. The FTC looks at injury and what the company could have done at reasonable cost.
In a small company the gap is usually a leftover. A developer deploys the whole repository to the web root, so .git/ answers. A backup is copied next to the site before an update and forgotten. An .env file with keys sits where the site is served from. Directory listing is on by default in the host’s setup. The site is on HTTPS, but a subdomain from an old campaign still answers on plain http. The 2015 settlements were with two firms each owned by an individual, but the FTC page gives no size for either, and the allegation was a public file area.
In a larger company the problem is scale. There are many hosts, staging sites that were never taken down, agency microsites and a CDN with different rules for different paths. The GoDaddy allegations show the other pattern: security claims made at brand level, with connections and controls that did not match them across a very large estate.
Enforcement cases
Published decisions about other companies, listed for context. Each links to the authority's own page. They say nothing about any particular website.

Larger companies
GoDaddy Inc.
The FTC alleged that GoDaddy claimed to provide award-winning security while not using multi-factor authentication, not monitoring for security threats and not securing connections to consumer data. The order finalized in May 2025 requires a comprehensive security program, independent assessments and no misrepresentation of its security.
Read the FTC (United States) publication about GoDaddy Inc.Cornerstone and Company, LLC and Bayview Solutions, LLC
The FTC alleged that two debt brokers, each named together with its owner, posted unencrypted files with names, addresses, card and bank account numbers and debt amounts for about 55,000 consumers on a website for the debt industry that was accessible to anyone with an internet connection. The settlements require a security program and independent assessments every two years.
Read the FTC (United States) publication about Cornerstone and Company, LLC and Bayview Solutions, LLCSkyMed International, Inc.
The FTC alleged that the travel emergency services company kept about 130,000 membership records, including health information, in a cloud database without encryption or authentication, which a researcher found through a publicly available search engine. The complaint says the database was publicly accessible for at least five months and that the company had displayed a HIPAA seal on its site without any outside review.
Read the FTC (United States) publication about SkyMed International, Inc.Lookout Services, Inc.
The FTC alleged that the Texas company's web-based I-9 product let people reach a database with names, addresses, dates of birth and Social Security numbers of about 37,000 consumers by typing a relatively simple URL into a browser, without entering credentials.
Read the FTC (United States) publication about Lookout Services, Inc.LightYear Dealer Technologies, LLC (DealerBuilt)
The FTC alleged that an employee of the Iowa dealer software company connected a storage device to its backup network without configuring it securely, leaving personal data of about 12.5 million consumers in clear text without access controls or authentication for 18 months. It said an intruder then downloaded data on more than 69,000 consumers.
Read the FTC (United States) publication about LightYear Dealer Technologies, LLC (DealerBuilt)Fandango, LLC and Credit Karma, Inc.
The FTC alleged that both companies turned off the SSL check that confirms an app is talking to the genuine server, so card details, Social Security numbers, passwords and other data sent over the connection could be intercepted. It said Fandango's iOS app ran this way from March 2009 to February 2013, and that Credit Karma released its Android app with the same setting a month after being warned about its iOS app.
Read the FTC (United States) publication about Fandango, LLC and Credit Karma, Inc.Virtua Medical Group, P.A.
The Division alleged that a transcription vendor's software update misconfigured the web server behind a password-protected FTP site, so medical notes of up to 1,654 patients could be found through Google searches and downloaded without a password, and Google kept cached copies after the fix. It alleged that the physician group had not analysed the risk to the patient data it sent the vendor or put measures in place to reduce it.
Read the New Jersey Attorney General and Division of Consumer Affairs publication about Virtua Medical Group, P.A.
Smaller companies
1Health.io Inc. (Vitagene)
The FTC alleged that the genetic testing company kept nearly 2,400 health reports and the raw genetic data of at least 227 consumers in publicly accessible cloud storage buckets, without encryption, access restrictions or logging. It said the company received at least three warnings over about two years before a researcher's contact in June 2019 led it to act.
Read the FTC (United States) publication about 1Health.io Inc. (Vitagene)Franklin's Budget Car Sales, Inc. (Franklin Toyota/Scion)
The FTC alleged that the Statesboro, Georgia car dealership had peer-to-peer file-sharing software on its network, which made files with names, addresses, Social Security numbers, dates of birth and driver's license numbers of about 95,000 consumers available to anyone on the file-sharing network.
Read the FTC (United States) publication about Franklin's Budget Car Sales, Inc. (Franklin Toyota/Scion)Doritex Corp. and Kallus Opraments (its website developer)
The Attorney General found that the Erie County company's website and job application portal were not secure and did not properly use encryption, so Google's crawler cached about 518 employment applications with names, addresses and Social Security numbers, open to anyone for over a month. The company notified no one for about a month after a tip. The developer agreed to build security and encryption into the sites it makes.
Read the New York Attorney General publication about Doritex Corp. and Kallus Opraments (its website developer)
How to fix it
The steps follow the FTC’s lessons: protect data in transit with TLS, check your configuration, and restrict access to what is needed.
- Check your own paths first. From a terminal run
curl -sI https://yourdomain.com/.envand the same for/.git/config,/backup.zipand any other file you can think of that should not be public. Look at the status line only. On your own site you can also look inside, and Peeky will not. - Keep the repository and backups out of the web root. Deploy build output only. Move dumps, archives and
.envfiles to a folder the server does not serve. - Block dotfiles and version-control folders at the server. One rule in the server config is enough.
- Turn directory listing off. Set
autoindex offin nginx orOptions -Indexesin Apache. - Treat anything that was reachable as read. If a path answered with a file that held keys or passwords, rotate them. Removing the file does not undo the time it was open.
- Fix transport and headers. Redirect http to https everywhere, allow TLS 1.2 and 1.3, add HSTS and content security headers as described in EU-15.
- Re-scan. Run a scan again and check the path and transport findings are gone.
location ~ /\.(?!well-known) { deny all; }
autoindex off;
This is a starting point. Whether it is enough for your data is a question for your adviser, and Peeky reports only what it sees.
Questions
What are website security best practices under US law?
No federal statute lists them. The FTC applies section 5 of the FTC Act, which bans unfair or deceptive practices, and its guidance and orders show what it expects: encrypt data in transit and in storage, limit access, and test the setup. States add their own rules, which differ.
Does the FTC regulate data security?
Yes, through section 5 of the FTC Act. In 2015 the Third Circuit held that the FTC can use the unfairness part of section 5 to challenge data security lapses. The FTC has brought many cases since, including GoDaddy in 2025.
What is the FTC's Start with Security guide?
It is the FTC's plain-language guide for businesses, built from lessons in its own cases. It tells companies to use strong cryptography, naming TLS, to protect sensitive data in transit, and to limit access to what each person needs.
What is a directory listing and why does it matter?
It is a web server page that lists the files in a folder, so anyone who finds the folder can see and open them. If the folder holds backups or private files, they become public. Peeky only records whether a known path answers, not what it holds.
Does Peeky look inside folders it finds?
No. Peeky only notes whether a few well-known paths answer from outside. It never opens, reads or saves what is there. It also is not a security testing service and cannot be used as one.
Filed with
The rule
FTC Act section 5, 15 U.S.C. § 45(a)(1) and (n)
Read the rule (FTC Act section 5, 15 U.S.C. § 45(a)(1) and (n))Sources
The law
- 15 U.S.C. § 45, FTC Act section 5 on unfair or deceptive acts or practices (United States Code, 2023 edition, govinfo)
- 15 U.S.C. § 45, FTC Act section 5 (Cornell Legal Information Institute)
- 16 CFR Part 314, Standards for Safeguarding Customer Information (FTC Safeguards Rule), eCFR
- New York General Business Law § 899-bb, data security protections (reasonable safeguards, with a small business provision)
- New York General Business Law § 899-aa, notice after unauthorized acquisition of private information
Guidance
- FTC, Start with Security: A Guide for Business
- FTC, Protecting Personal Information: A Guide for Business (October 2016; TLS for data in transit)
- New York Attorney General, data security guide for businesses drawn from its investigations (19 April 2023; secure authentication, encryption, knowing where data is kept)
- NIST SP 800-52 Rev. 2, Guidelines for the Selection, Configuration, and Use of Transport Layer Security (TLS) Implementations
Decisions and cases
- U.S. Court of Appeals for the Third Circuit, FTC v. Wyndham Worldwide Corp., No. 14-3514, opinion of 24 August 2015
- FTC, Third Circuit rules in FTC v. Wyndham case, 25 August 2015
- FTC, FTC Finalizes Order with GoDaddy over Data Security Failures, 21 May 2025
- FTC, FTC Says Genetic Testing Company 1Health Failed to Protect Privacy and Security of DNA Data, 16 June 2023
- FTC, In the Matter of 1Health.io Inc., complaint, Docket No. C-4798
- FTC, FTC Charges Businesses Exposed Sensitive Information on Peer-to-Peer File-Sharing Networks, June 2012 (Franklin's Budget Car Sales and EPN)
- FTC, Debt Brokers Settle FTC Charges They Exposed Consumers' Information Online, 13 April 2015
- FTC, Company that Provides Travel Emergency Services Settles FTC Allegations, 16 December 2020 (SkyMed International)
- FTC, SkyMed International, Inc., complaint, Docket No. C-4732
- FTC, FTC Settles Charges Against Two Companies That Allegedly Failed to Protect Sensitive Employee Data, May 2011 (Lookout Services and Ceridian)
- FTC, Auto Dealer Software Provider Settles FTC Data Security Allegations, 12 June 2019 (LightYear Dealer Technologies)
- FTC, Fandango and Credit Karma settle FTC charges over failing to securely transmit sensitive information, 28 March 2014
- FTC, Uber Agrees to Expanded Settlement with FTC Related to Privacy, Security Claims, April 2018 (access key posted on a code-sharing site, unencrypted files in cloud storage)
- New York Attorney General, Settlement After Social Security Numbers of Over 500 Job Applicants Posted Online (Doritex Corp. and Kallus Opraments, 24 March 2016)
- New Jersey Attorney General, Virtua Medical Group Agrees to Pay Nearly $418,000, Tighten Data Security to Settle Allegations of Privacy Lapses (4 April 2018)
- New Jersey Superior Court, Chancery Division, Burlington County, Final Consent Judgment, Grewal v. Virtua Medical Group, P.A. (2018)
- New York Attorney General, $200,000 Settlement With Buffalo Non-Profit for Exposing Clients' Sensitive Personal Information on Internet for Years (The Arc of Erie County, 29 August 2018; spreadsheets on a page meant to be behind a login were found through search engines)
- New York Attorney General, Attorney General James Secures $400,000 From Wegmans After Personal Information Was Exposed (misconfigured, publicly accessible cloud storage containers, 30 June 2022)
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For information only. Not legal advice.
