FTC Settles with Two Online Operators for Failing to Secure Customers’ Data

On April 24, 2019, the Federal Trade Commission announced two data security cases involving online operators—one, an online rewards website, and the second, a dress-up games website—that were alleged to have failed to take reasonable steps to secure consumers’ data, which allowed hackers to breach both websites. ClixSense CaseThe FTC’s case against ClixSense and the company’s owner involved deceptive statements that the site, which collected personal information from users (including, in some instances, Social Security numbers), “utilizes the latest security and encryption techniques to ensure the security of your account information.” According to the FTC, ClixSense’s failures to implement reasonable security measures permitted hackers to gain access to the company’s network, through a browser extension that ClixSense downloaded. The hackers then published and offered the ClixSense user data for sale. Unixiz CaseThe…

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