- That Federal Trade Commission penalized alcohol delivery service Drizly Inc and CEO Cory Rellas over alleged security vulnerabilities related to a 2020 data breach that exposed the personal information of 2.5 million consumer.
- The proposed order hired Drizly, a subsidiary of Uber Technologies Inc ABOVEto destroy unnecessary data and limit the information the company may have collect and store.
- In 2020, Drizly admitted that a hacker obtained some of its customer data, including emails, birthdate information, passwords, and in some cases addresses, Bloomberg reported.
- Also read: Uber fines millions to settle lawsuit alleging overtaxing of people with disabilities
- Drizly and Rellas were made aware of security issues two years before the breach, but took no steps to protect consumer data from hackers, the FTC said.
- The order binds Rellas to data security requirements “for its role in monitoring unlawful business practices.”
- The FTC’s order applies to Rellas personally and will move with him even if he leaves Drizly.
- Rellas is required to implement an information security program in prospective companies if that company collects consumer information from more than 25,000 individuals and if it is a majority owner, CEO, or officer with information security responsibilities.
- In October, a court found Uber’s former security chief guilty of covering up a 2016 data breach at the ride-sharing giant, concealing details from US regulators and paying two hackers in return for her discretion.
- Uber blamed the Lapsus$ group for their September hack, which forced them to shut down temporarily some internal systems.
- Price promotion: UBER shares closed 0.14% lower at $27.61 premarket on the latest check Tuesday.
- Photo by Okan Caliskan from Pixabay
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