![]() In her separate statement, Wilson noted that the FTC was not alleging that Rellas had direct knowledge of the practices that led to the FTC investigation, but rather that he should have prioritized hiring a senior executive to oversee data security. While all four FTC commissioners voted to issue the order to Drizly, Commissioner Christine Wilson dissented to the inclusion of Cory Rellas, who is required to implement an information security program if he moves to another company that collects information on 25,000+ consumers. The proposed order against Drizly and Rellas is a response to the company’s failure to address security problems first identified in 2018. In 2020, hackers once again accessed company login information through GitHub via hacking a Drizly employee account and stole customer’s personal information. In 2018, a Drizly employee posted company login information to GitHub and hackers used this information to mine cryptocurrency. It was not the illegal or harmful sale of alcohol that got the company and Cory Rellas embroiled in an ethical and regulatory controversy, but rather the failure to protect the personal information of its consumers. Last year, Uber acquired Drizly for $1.1 billion. Nick, Justin, and Cory were able to figure out a legal, safe, and profitable way to deliver alcohol through an app. Should CEOs be personally held accountable for their company’s data security breaches? According to the Federal Trade Commission (FTC) in their proposed order against Drizly and CEO James (Cory) Rellas, the answer is “yes.”ĭrizly is a Boston-based company that was founded in 2012 when, upon finding their fridge empty, Boston College student Nick Rellas ‘12 texted his friend and recent graduate Justin Robinson ‘11 out of frustration, “Why can’t you get alcohol delivered?” They co-founded Drizly that same year with Nick’s cousin, Cory Rellas. This article appears across the Ethics Center website to readers of All About Ethics, Benison: The Practice of Ethical Leadership, and Internet Ethics: Views From Silicon Valley. Note: October is Cybersecurity Awareness Month! See our " Introduction to Cybersecurity Ethics" and related case studies. Sarah Cabral is a senior scholar for business ethics with the Markkula Center for Applied Ethics at Santa Clara University.
0 Comments
Leave a Reply. |