FTC Finalizes Settlement with ClixSense for Failure to Secure Consumers' Personal Data
Time 1 Minute Read

On July 2, 2019, the Federal Trade Commission announced a case involving the operator of an online rewards website who allegedly failed to take reasonable steps to secure consumers’ personal data.

According to the FTC, James V. Grago, Jr., the operator of the website ClixSense, deceived consumers by falsely claiming that the website “utilizes the latest security and encryption techniques to ensure the security of your account information.” In fact, the FTC stated, “ClixSense engaged in unreasonable security practices and failed to implement minimal data security measures to secure the personal data it collected, such as Social Security numbers and dates of birth.”

Under the terms of the settlement with the FTC, Grago is barred from misrepresenting how any company he controls protects personal information. He must also implement and annually certify a comprehensive data security program, verified by outside monitoring.

You May Also Be Interested In

Time 3 Minute Read

The Connecticut Attorney General recently issued a legal memorandum regarding the application of existing Connecticut laws, such as the Connecticut Data Privacy Act, to the use of artificial intelligence.

Time 3 Minute Read

On March 20, 2026, Oklahoma Governor Kevin Stitt signed SB 546 into law, enacting the Oklahoma Consumer Data Privacy Act, which will take effect on January 1, 2027.

Time 2 Minute Read

On February 5, 2026, Alabama Governor Kay Ivey signed Alabama House Bill 161, the App Store Accountability Act, establishing age categorization, age verification and parental consent requirements for mobile application marketplace providers operating in Alabama, effective January 2027.

Time 2 Minute Read

On March 5, 2026, the California Privacy Protection Agency announced that the agency had reached a settlement with Ford Motor Company resolving an enforcement action against the company that alleged noncompliance with the California Consumer Privacy Act’s opt-out of sale/sharing rights.

Search

Subscribe Arrow

Recent Posts

Categories

Tags

Archives

Jump to Page