The New York Times reported that the Federal Trade Commission filed a complaint against the company.
A former Chegg contractor gained access to one of the company's third-party cloud databases, exposing personal information such as names, email addresses, and passwords, in addition to students' religion, sexual orientation, and parents' income. The data was sold online. The company didn't have a written security policy until January 2021.
The data was found for sale online.
According to the FTC, the data of 40 million users was exposed by the insufficient cybersecurity practices of chegg. A proposed order from the FTC will see the company implement multifactor authentication, provide security training to employees, and allow customers to access and remove their data from the platform.
According to a statement provided to The New York Times, data privacy was a top priority for the firm and that only a small percentage of users had provided data on their religion and sexual orientation. According to the statement, chegg is committed to protecting users' data and has worked with privacy organizations to improve security.
Samuel Levine is the Director of the FTC's Bureau of Consumer Protection. The company is required to strengthen security safeguards, offer consumers an easy way to remove their data, and limit information collection on the front end. The Commission will be aggressive in protecting personal data.
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