The Federal Trade Commission (FTC) this week announced an administrative complaint against online alcohol marketplace Drizly and its CEO, James Cory Rellas, over the company’s poor data security practices.
Although Drizly and Rellas were made aware of the company’s security flaws two years prior, a data breach that affected the personal information of over 2.5 million people still happened, prompting the FTC to take action. The FTC is now requiring Drizzly to destroy unnecessary data and to collect less information from its customers, and it has bound Rellas to specific data security requirements because the company failed to implement strong protections for customer data.
The FTC claims that Drizly and Rellas neglected to implement fundamental security safeguards for the collected data.
Read More: FTC Targets Drizly and Its CEO Over Cybersecurity Failures That Led to Data Breach
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