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FTC settles data breach charges against two firms

Grant Gross | May 3, 2011
The U.S. Federal Trade Commission will require two companies -- one providing payroll and human resources services and another providing immigration law compliance services -- to undergo independent security audits for 20 years after data breaches exposed the personal information of 65,000 employees of the two companies' business partners.

Lookout also failed to require strong user passwords, failed to require periodic changes of such passwords, and failed to provide adequate employee training, the FTC alleged.

The settlements orders bar the companies from making misrepresentations, including misleading claims about the privacy, confidentiality, or integrity of any personal information collected about consumers. The proposed settlements are open to public comment until June 2.

In March, FTC proposed a similar settlement in response to Google exposing personal information of Gmail users when it rolled out its Buzz social-networking service.

 

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