FTC Penalizes Uber Delivery Company CEO For Data Hack

  • The Federal Trade Commission penalized alcohol delivery company Drizly Inc and CEO Cory Rellas for alleged security lapses related to a 2020 data breach that exposed the personal information of 2.5 million consumers
  • The proposed order mandated Drizly, a subsidiary of Uber Technologies Inc UBER, to destroy unnecessary data and restrict the information the company can collect and retain
  • In 2020, Drizly acknowledged that a hacker acquired some of its customer data, including emails, date-of-birth information, passwords, and in some cases, addresses, Bloomberg reported.
  • Also Read: Uber Penalized Millions To Settle Lawsuit For Overcharging People With Disabilities
  • Drizly and Rellas were alerted to security problems two years before the breach yet failed to take steps to protect consumers’ data from hackers, the FTC said.
  • The order binds Rellas to data security requirements “for his role in presiding over unlawful business practices.”
  • The FTC order applies personally to Rellas and will move with him even if he quits Drizly. 
  • Rellas is bound to implement an information security program at future companies if that company collects consumer information from more than 25,000 people and where he is a majority owner, CEO, or senior officer with information security responsibilities.
  • In October, a court held Uber’s former head of security guilty of covering up a 2016 data breach at the rideshare giant, hiding details from U.S. regulators, and paying off a pair of hackers in return for their discretion.
  • Uber held the Lapsus$ group responsible for its September hack that temporarily forced it to shut down some internal systems.
  • Price Action: UBER shares closed lower by 0.14% at $27.61 premarket on the last check Tuesday.
  • Photo by Okan Caliskan from Pixabay
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