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FTC Taking Action Against Drizly For 2020 Data Breach

October 26, 2022

The Federal Trade Commission yesterday announced plans to hold Drizly accountable for a 2020 data leak that exposed the information of up to 2.5 million consumers. Under the FTC proposal, Drizly and CEO Cory Rellas would be required to delete unneeded consumer data, while issuing a report to the FTC on what is deleted, and to restrict the data the company can collect and retain moving forward. Drizly and Rellas must also implement an information security program to protect Drizly’s consumers. The security stipulations would follow Rellas to new positions beyond Drizly, which was acquired by Uber for $1.1 billion last year.

According to the FTC, “Rellas will be required to implement an information security program at future companies if he moves to a business collecting consumer information from more than 25,000 individuals, and where he is a majority owner, CEO, or senior officer with information security responsibilities.” The FTC will formally publish the order to the Federal Register soon and it will be followed by a 30-day public comment period before the FTC makes a final decision. According to the FTC, Drizly and Rellas were alerted to security problems two years prior to the breach yet failed to take steps to protect consumers’ data from hackers.—Shane English

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