FTC seeks to clamp down on alcohol supply service Drizly and its CEO after knowledge breach

Washington
CNN Business
 — 

The Federal Trade Commission is seeking tough new restrictions against Drizly, the alcoholic beverage delivery platform, after what US regulators allege were repeated security failures that compromised the data of 2.5 million people.

The proposed order against Drizly, if finalized, would force the company to beef up its cybersecurity and limit its data collection practices, a common requirement in FTC privacy orders. But in a significant step, the FTC also specifically named the company’s CEO, James Cory Rellas, imposing what would be binding obligations on him and all of his future business activities, at Drizly or otherwise. Drizly would also be required to delete any data it holds on consumers that isn’t strictly necessary for it to run its service, the FTC said in a release.

“We take consumer privacy and security very seriously at Drizly, and are happy…

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