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“Ding Dong” -- FTC-Drizly Data Breach Settlement Will follow CEO Personally for a Decade
The Federal Trade Commission (“FTC”) announced on Monday that it is settling a case against Drizly and its CEO stemming from a 2020 data breach that impacted roughly 2.5 million consumers. The proposed order not only contains a laundry list of security-related obligations for Drizly that span twenty years, but also names and targets its CEO James Cory Rellas personally, hitting him with obligations that will follow him for a decade, even if he moves to other organizations. There are also hints that the FTC intends to elevate information security issues to boards of directors and other top-level executives.
FTC Personal Health Records Breach Rule Applies to Health App and Connected Device Developers
On September 15, 2021, the FTC issued a Policy Statement offering guidance on the scope of the FTC’s Health Breach Notification Rule. The Breach Rule applies to a wide range of health apps where identifiable health information is involved.
Musical.ly’s COPPA Failure Falls Flat at the FTC; Will Pay Note-Worthy Fine
By Cynthia Larose and Elana Safner
The Federal Trade Commission (“FTC”) has handed down its largest civil penalty ever for violations of the Children’s Online Privacy Protection Act (“COPPA”). Musical.ly, now known as TikTok after a 2018 merger, agreed to a fine of $5.7 million for its violations. The settlement was significant not only because of its record amount, but also because it includes a specific agreement on how the website will operate going forward.
FTC Asked to Investigate Google’s Matching of “Bricks to Clicks”
By Cynthia Larose and Brian Lam
Recently, the Electronic Privacy Information Center (“EPIC”) asked the FTC to begin an investigation into a Google program called “Store Sales Management.” The purpose of Store Sales Management is to allow for the matching goods purchased in physical brick and mortar stores to the clicking of online ads, or as we refer to the practice, “Bricks to Clicks.”
The FTC’s Uber Consent Order: A Warning to Fast-Growing Companies
By Cynthia Larose and Brian Lam
Recently, Uber agreed to a proposed Federal Trade Commission (FTC) consent order (“Consent Order”) to settle charges in an FTC complaint (“Complaint”) regarding behavior stemming back to at least 2014. Acting Chairman Maureen K. Ohlhausen has stressed the implications this has for other companies:
FTC Takes Action Against Retail Tracking Start-Up Nomi Technologies
On April 23, 2015 the FTC settled deception charges against start-up Nomi Technologies, Inc. related to Nomi’s in-store, sensor-based, tracking technology.[1] This is the first FTC enforcement action against emerging retail store–based tracking technologies.
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