FTC’s First Foray Into Gig Economy Data Security

Law360, New York (August 28, 2017, 11:33 AM EDT) -- On Aug. 15, Uber Technologies Inc. reached an agreement with the Federal Trade Commission to settle allegations that the company deceived consumers by misrepresenting its security and employee access practices for personal consumer information, including such information stored in the cloud. The settlement provides several key lessons concerning the FTC’s data security enforcement program for companies that collect or use personal information.

The FTC’s action against Uber, which represents the agency’s first foray into data security practices in the “gig” or “sharing” economy, reflects the FTC’s untested but expansive interpretation of “consumer” under the Federal Trade Commission Act to include not only the...

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