Washington, D.C. To address claims made by federal regulators that its security lapses exposed the personal information of about 2. 5 million consumers, the alcohol delivery service Drizly has committed to enhance its data protection and limit data collecting.
The Federal Trade Commission announced the action Monday against Drizly, a Boston-based subsidiary of Uber that delivers beer, wine and spirits in states where it’s legal, and partners with retailers in hundreds of cities around the US.
James Cory Rellas, the CEO of Drizly, is also named in the proposed cooperation agreement with the FTC. The regulators assert that despite being made aware of security issues two years before to the 2020 breach, the company and Rellas did not take any steps to protect the data of the consumers.
Drizly agreed to put in a comprehensive data security program and establish security safeguards, and to limit future data collection or storage to that which is necessary for specific purposes. Additionally, unneeded data will be deleted.
“Our proposed order against Drizly not only restricts what the company can retain and collect going forward but also ensures the CEO faces consequences for the company’s carelessness,” Samuel Levine, director of the FTC’s bureau of consumer protection, said in a statement. CEOs who skimp on security should pay attention.
” Drizly collects and stores on Amazon Web Services cloud-computing service a wide range of personal data from customers such as email and postal addresses, phone numbers, geolocation information and data purchased from third parties, according to the FTC.
Drizly said in a statement that it “takes consumer privacy and security extremely seriously, and we are delighted to put this 2020 event behind us.”
The FTC will determine whether to make the proposed consent agreement final after receiving public comments for 30 days.
After an alleged breach, Drizly commits to strengthen data security
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