Uber has settled with federal regulators that accused the start-up of “deceptive privacy and data security claims.”
More than 100,000 names and driver’s license numbers were stolen in a 2014 data breach of Uber’s database, operated by Amazon Web Services. The FTC said the company could have made low-cost attempts, like using multi-factor authentication, to prevent the breach.
Plus, the FTC said, the ride-hailing start-up stopped using an automated system for monitoring employee access to consumer data after less than a year.
“Uber failed consumers in two key ways: First by misrepresenting the extent to which it monitored its employees’ access to personal information about users and drivers, and second by misrepresenting that it took reasonable steps to secure that data,” Maureen Ohlhausen, acting chairman of the Federal Trade Commission, said in a statement. “This case shows that, even if you’re a fast growing company, you can’t leave consumers behind: you must honor your privacy and security promises.”
Uber agreed to privacy audits for the next 20 years and will be implementing a new privacy program as part of the settlement. A request for comment from Uber wasn’t immediately returned.
Source: Tech CNBC
Uber agrees to 20 years of privacy audits after FTC says it 'failed consumers'