© Stocksak. FILE PHOTO. A delivery order was placed at Regina’s Liquors following Uber’s announcement that it would acquire the alcohol delivery company in Boston, Massachusetts U.S.A, February 3, 2021. REUTERS/Allison Dinner
WASHINGTON, (Stocksak), – The online liquor market Drizly reached an agreement with the U.S. Federal Trade Commission for a data breach that revealed information about 2.5 million people.
Drizly must destroy any unnecessary data and limit its collection. The settlement also requires James Rellas, Chief Executive, to adhere to certain data security practices.
According to the agency, Rellas and the company were aware of security issues long before Drizly was hacked. However, they failed to address them.
Uber (NYSE) owns Drizly which delivers liquor to more than 30 states. Neither company was available for comment immediately.
“Drizly & Rellas were alerted to security problems 2 years before the breach, yet they failed to act. Instead, they stored key information on an unsecured platform, didn’t monitor for security threats, and exposed customers to hackers & identity thieves,” FTC Chair Lina Khan tweeted on Monday.