Alcohol delivery app Drizly has agreed to tighten its data security and limit data collection to resolve federal regulators’ allegations that its security failures exposed the personal information of some 2.5 million customers.
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. The proposed consent agreement with the FTC also names Drizly CEO James Cory Rellas.
The regulators allege that the company and Rellas were alerted to security problems two years before the 2020 breach yet failed to act to protect consumers’ data. Drizly agreed to put in a comprehensive data security program and establish security safeguards.
Read More: Drizly Agrees to Tighten Data Security After Alleged Breach
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