FTC Takes Action Against CafePress for Data Breach Cover Up

The Federal Trade Commission ("FTC") has published a press release on its website on 15 March 2022 that it orders e-commerce platform to bolster data security and provide redress to small businesses. FTC took action against online customized merchandise platform CafePress over allegations that it failed to secure consumers’ sensitive personal data and covered up a major breach.

The FTC alleges that CafePress failed to implement reasonable security measures to protect sensitive information stored on its network, including plain text Social Security numbers, inadequately encrypted passwords, and answers to password reset questions. The Commission’s proposed order requires the company to bolster its data security and requires its former owner to pay a half million dollars to compensate small businesses.

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