Drizly agrees to tighten data security after alleged breach

Oct 24, 2022, 2:28 PM | Updated: 2:49 pm

WASHINGTON (AP) — 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, and to limit future data collection or storage to that which is necessary for specific purposes. It will also destroy unnecessary data.

“Our proposed order against Drizly not only restricts what the company can retain and collect going forward but also ensures the CEO faces consequences for the company’s carelessness,” Samuel Levine, director of the FTC’s bureau of consumer protection, said in a statement. “CEOs who take shortcuts on security should take note.”

Drizly collects and stores on Amazon Web Services cloud-computing service a wide range of personal data from customers such as email and postal addresses, phone numbers, geolocation information and data purchased from third parties, according to the FTC.

“We take consumer privacy and security very seriously at Drizly, and are happy to put this 2020 event behind us,” the company said in a statement.

The proposed consent agreement will be opened to public comment for 30 days, after which the FTC will decide whether to make it final.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - A staff of Nissan car showroom wipes a car on Jan. 31, 2022, in Tokyo. Nissan reported a 55%...
Associated Press

Japan’s Nissan reports better profit as chip crunch eases

TOKYO (AP) — Nissan reported a 55% jump in October-December profit Thursday, as the Japanese automaker seeks to embark on a less bumpy journey with its French alliance partner Renault. Profit for the quarter at Yokohama-based Nissan Motor Co. totaled 50.6 billion yen ($386 million), up from 32.7 billion yen the previous year. Quarterly sales […]
2 hours ago
Heavy machinery moves coal as it is poured onto a stack near Muswellbrook in the Hunter Valley, Aus...
Associated Press

Australia rejects new coal mine on environmental grounds

CANBERRA, Australia (AP) — Australia has for the first time rejected a coal mining application based on environmental law. The government is under pressure to curb climate change by blocking all new coal and gas extraction projects. Australia is one of the world’s largest exporters of both fossil fuels, which are major sources of the […]
2 hours ago
Raqiya Abdsalam, who survived a bout of dengue fever, sits at her home in El-Obeid, Sudan on Januar...
Associated Press

Sudan’s tropical disease spike reflects poor health system

EL OBEID, Sudan (AP) — The two Sudanese women thought they had malaria and were taking their medication, but things took a dire turn. Both complained of a splitting headache and fever that didn’t respond to the anti-malaria treatment. By the time she was diagnosed with dengue fever, Raqiya Abdsalam was unconscious. “Soon after they […]
2 hours ago
FILE - Philippine President Ferdinand Marcos Jr. gestures during his speech at the 2022 Department ...
Associated Press

Japan, Philippines to sign plans to boost defense ties

TOKYO (AP) — Japan’s Prime Minister Fumio Kishida and Philippine President Ferdinand Marcos Jr. are expected to sign key agreements to boost their defense ties Thursday as Asia sees tensions around China’s growing influence. Marcos is visiting Japan soon after he and U.S. Secretary of Defense Lloyd Austin reached agreements on allowing the United States […]
1 day ago
A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securiti...
Associated Press

Asian shares mixed after Wall St falls on rate hike worries

BANGKOK (AP) — Shares were mixed Thursday in Asia after Wall Street gave back some of its recent gains on persisting uncertainty over interest rates and inflation. Benchmarks declined in Tokyo, Seoul and Sydney but rose in Hong Kong and Shanghai. U.S. futures were higher while oil prices edged up. Wall Street retreated Wednesday following […]
1 day ago
FILE - The company logo highlights the grille of a 2021 Tacoma pickup truck on display in the Toyot...
Associated Press

Toyota reports 8% drop in Oct-Dec profit, keeps forecast

TOKYO (AP) — Toyota reported an 8.1% drop in fiscal third quarter profit Thursday, as a global shortage of computer chips and soaring raw material costs battering the auto industry hit Japan’s top automaker. Toyota Motor Corp.’s October-December profit totaled 727.9 billion yen ($5.6 billion), down from 791.7 billion yen the previous year. The company […]
1 day ago

Sponsored Articles

...
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Drizly agrees to tighten data security after alleged breach