FTC brings action against Drizly, CEO Cory Rellas after data breach

The Federal Trade Commission is seeking to sanction online alcohol marketplace Drizly and its CEO James Cory Rellas over allegations that security failures led to a breach that exposed the personal information of roughly 2.5 million customers, the agency said Monday. According to a complaint, the company, a subsidiary of Uber Technologies Inc. UBER, -1.32%, failed to use “appropriate information security practices” to protect consumer data. Samuel Levine, director of the FTC’s consumer protection bureau, said in a statement that the agency took the rare step of seeking individual sanctions against a company executive to ensure “the CEO faces consequences for the company’s carelessness.”The FTC’s proposed order would require the company to destroy unnecessary data, restrict the types of data it can collect and those restrictions would follow Rellas were he to leave for another company.A Drizly spokesperson told MarketWatch via email that, “We take consumer privacy security very seriously at Drizly and are happy to put this 2020 event behind us.”