Drizly agrees to tighten data security after alleged breach
Alcohol delivery app Drizly has agreed to tighten data security and limit data collection to address allegations by federal regulators that its security flaw exposed the personal information of about 2 people, 5 million customers.
The Federal Trade Commission announced action Monday against Drizly, a Boston-based Uber subsidiary that supplies beer, wine and spirits in legal states and partners with other companies. retailers in hundreds of cities across the United States. The proposed consent agreement with the FTC also names Drizly CEO James Cory Rellas. Regulators allege that the company and Rellas were warned security problem two years before the 2020 breach but failed to act to protect consumer data.
Drizly has agreed to include a whole data security program and establish security safeguards, and to limit in the future data collection or storage needed for specific purposes. It will also destroy unnecessary data.
“Our proposed order against Drizly not only limits what the company can keep and collect later, but also ensures the CEO faces consequences for the company’s negligence,” said Samuel Levine, director of the FTC’s office of consumer protection, said in a statement. “CEOs taking shortcuts on security should take note.”
Drizly collects and stores on the Amazon Web Services cloud computing a variety of customer personal data such as email and postal addresses, phone numbers, geo-location information, and data purchased from third parties. third, according to the FTC.
“We take consumer privacy and security very seriously at Drizly, and are delighted to host this 2020 event,” the company said in a statement.
The proposed consent will be open to public comment for 30 days, after which the FTC will decide whether to make a final decision.
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