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In the Matter of Drizly and James Cory Rellas

FTC 2023185 (2023)

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In the Matter of Drizly and James Cory Rellas

Federal Trade Commission
FTC 2023185 (2023)

SC

Facts

Drizly (defendant) was an online platform for alcohol delivery. In 2018, a Drizly employee’s access to Drizly’s cloud was hacked, resulting in a hacker using the cloud to mine cryptocurrency. Drizly’s CEO, James Rellas (defendant), did not see to any improvements in Drizly’s data-security practices as a result of this incident. In 2020, Drizly’s consumer database was hacked, exposing the personal information of almost 2.5 million consumers. The Federal Trade Commission (FTC) (plaintiff) initiated a complaint against Drizly, alleging that Drizly’s lack of a security program to protect consumers’ personal data constituted an unfair or deceptive act or practice under the FTC Act. The FTC faulted Rellas for these failures, in particular his failure to hire an executive responsible for data security. The FTC included Rellas in the complaint as an individual defendant.

Rule of Law

Issue

Holding and Reasoning ()

Concurrence/Dissent (Wilson, Comm’r)

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