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US FTC says Marriott will boost security to settle data breach charges
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US FTC says Marriott will boost security to settle data breach charges
Oct 9, 2024 9:40 AM

WASHINGTON, Oct 9 (Reuters) - The U.S. Federal Trade

Commission said on Wednesday it will require Marriott

International ( MAR ) and its subsidiary Starwood Hotels & Resorts

Worldwide to put in place an information security program to

settle charges over multiple data breaches from 2014 to 2020.

The three large data breaches, which took place from 2014 to

2020, affected more than 344 million customers worldwide, the

FTC said.

"Marriott's ( MAR ) poor security practices led to multiple

breaches affecting hundreds of millions of customers," said

Samuel Levine, Director of the FTC's Bureau of Consumer

Protection. "The FTC's action today, in coordination with our

state partners, will ensure that Marriott ( MAR ) improves its data

security practices in hotels around the globe."

Marriott ( MAR ) and Starwood also agreed to provide its U.S.

customers with a way to request deletion of personal information

associated with their email address or loyalty rewards account

number. Marriott ( MAR ) will also be required to review loyalty rewards

accounts upon customer request and restore stolen loyalty

points, the FTC said.

In a separate settlement also announced on Wednesday,

Marriott ( MAR ) agreed to pay a $52 million penalty to 49 states and

the District of Columbia to resolve similar data security

allegations, the FTC said.

"Protecting guests' personal data remains a top priority

for Marriott ( MAR ). These resolutions reaffirm the company's continued

focus on and significant investments in maintaining and adapting

its programs and systems to assess, identify, and manage risks

from evolving cybersecurity threats," Marriott ( MAR ) said in a

statement after the settlement was announced.

"As indicated in the agreements with the FTC and the

state Attorneys General, Marriott ( MAR ) makes no admission of

liability with respect to the underlying allegations," the

statement said.

Marriott ( MAR ) also faced a London class action suit in 2020

brought by millions of former guests demanding compensation

after their personal records were hacked in one of the largest

data breaches in history.

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