Market Overview

Uber Settles With FTC Over Second Consumer Deception Case This Year

Uber Settles With FTC Over Second Consumer Deception Case This Year

Uber Technologies, Inc. agreed to tougher ways to protect the privacy of its customers, settling a Federal Trade Commission complaint that the ride-sharing company failed to properly monitor its employees’ access to consumer's personal information.

It was the second case of consumer deception settled with the FTC this 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,” FTC Acting Chairman Maureen K. Ohlhausen said in a press release.

Complaints Of Privacy Hacks Originated Years Ago

The FTC cited news reports that prompted Uber to issue a November 2014 statement outlining “a strict policy prohibiting” employees from accessing rider and driver data unless it was for legit business purposes. In December 2014, Uber put in an automated system for monitoring employee access, but stopped using it less than a year later.

The FTC statement said that as a result, an intruder accessed personal information about Uber drivers in May 2014, including more than 100,000 names and driver’s license numbers that Uber stored in a datastore operated by, Inc. (NASDAQ: AMZN).

Under the settlement, Uber must prohibit misrepresenting its privacy standards and must get an outside audit every two years for the next two decades.

Earlier FTC Case Also Involved Deception

In January, the FTC fined Uber $20 million for misleading prospective drivers with exaggerated earning claims. The $20 million will be used to provide refunds to affected drivers across the country.

Related Link:

Twilio Reducing Its Reliance On Uber, And That’s A Good Thing

Image Credit: By Yinxinybyq - Own work, CC BY-SA 4.0, via Wikimedia Commons

Posted-In: Amazon Federal Trade Commission FTCNews Travel Legal Tech General Best of Benzinga


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