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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