It became a subsidiary of Uber after the ride-sharing firm acquired the platform for approximately US$1.1 billion in February 2021. Rellas was ordered to comply to specific data security requirements, after the FTC accused him of overseeing and engaging in ‘unlawful business practices’.Ī spokesperson for Drizly said: “We take consumer privacy and security very seriously at Drizly, and are happy to put this 2020 event behind us.”įounded in 2012, Boston-headquarted Drizly claims to be the largest online marketplace for alcohol in North America. “CEOs who take shortcuts on security should take note.” “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,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. The proposed order also includes restricting future data collection and retention, and binds Drizly CEO James Cory Rellas to specific data security requirements.ĭrizly and Rellas were alerted to the security problems in 2018, two years prior to the breach, according to the FTC, yet ‘failed to take steps’ to protect consumers’ data from hackers. The FTC has ordered Drizly to destroy ‘unnecessary data’, after alleging the company’s inadequate security measures led to a data breach in July 2020, which affected 2.5 million consumers. The platform has seen record sales since the pandemic started -the week of April 13, sales were a whopping 535% over baseline.The Federal Trade Commission (FTC) has taken action against alcohol e-commerce platform Drizly and its CEO for alleged security failures that resulted in the leak of the personal information of 2.5 million users. New customers account for approximately 40% of current orders and new buyer sales remain up 1200% year-over-year. Alcohol brands that did not have an online presence before Coronavirus took hold were forced to pivot to an increased presence on apps like Drizly and Minibar Delivery to maintain relevance. With on-and off-premise liquor retailers shuttered, consumers are ordering their pandemic booze online-Drizly saw new users spike by 1700% in spring 2020. This is a big hit for a company that has thrived over the pandemic period. You won’t know if it was as a result of the Drizly breach specifically, but you at least are aware your data is being used maliciously and you can begin investigating your exposure and change your passwords across all digital accounts. ” When you have two-factor authentication enabled, or another similar security barrier in place, and you’re being notified of unrecognized device activity, it can be a sign that your data has been breached. Having a monitoring capability in place is a way to get an idea of where your data is surfacing across the digital ecosystem. “When these types of breaches happen, it’s hard for the average person to know they’ve been affected. “There’s nothing users can do about an app’s security infrastructure, but what they can do is be extra cautious about their own digital behavior when using technology – apps, social media platforms, etc,” says Toohil. Drizly has notified all affected consumers.
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