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The FTC is investigating Chegg for “negligent” storage of user data
According to an FTC press release, the agency plans to take action against edtech company Chegg for its “negligent” collection and storage of data on 40 million users.
“Chegg used shortcuts to the confidential information of millions of students. Today’s order requires the company to strengthen security measures, offer consumers an easy way to delete their data and limit information collection on the front end. The commission will continue to act aggressively to protect personal data.” – Samuel Levin, Director of the FTC’s Bureau of Consumer Protection.
To make matters worse, Chegg collected some highly sensitive data, including religious affiliation, sexual orientation, and even parents’ incomes. This puts lax data protection measures in the context of a serious problem that needs to be addressed.
“Even Chegg’s cybersecurity officer called the data collected by the scholarship search service ‘very sensitive.’ – Leslie Phair, FTC Senior Counsel
As for exactly what Chegg did wrong, the FTC said Chegg failed to implement basic security measures, stored information in an insecure state, and failed to develop adequate security policies and training. The investigation means Chegg will have to significantly beef up his security, and is also likely to pay a fine in the near future.
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