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FTC Settles with Ascension Data Over GLBA Vendor Oversight Violations

Ascension Data & Analytics, LLCDecember 15, 2020Federal Trade Commission

Summary

Ascension Data & Analytics, LLC, a mortgage analytics company, settled FTC allegations that it violated the Gramm-Leach-Bliley Act's Safeguards Rule by failing to ensure its vendor adequately protected consumer data. The vendor stored sensitive mortgage information in plain text on a cloud server, leading to unauthorized access. Ascension must implement a data security program, undergo biennial assessments, and report future breaches.

Remedy

Ascension must implement a comprehensive data security program, undergo biennial independent assessments of its data security program, have a senior executive certify annual compliance, and report any future data breaches to the FTC within 10 days.

Compliance ProgramAudit RequirementReporting Requirements

Contract Impact

In-house legal teams should review all vendor, data processing, and service agreements where the vendor handles sensitive consumer financial data (e.g., mortgage information). Focus on clauses requiring data security measures, vendor oversight rights, audit provisions, breach notification obligations, and indemnification for data incidents. Specific changes may include: (1) mandating compliance with the GLBA Safeguards Rule; (2) requiring vendors to implement and document an information security program; (3) granting the company explicit rights to audit vendor security practices; (4) obligating vendors to report security incidents promptly; and (5) including contractual remedies for failures to protect data, such as termination rights or liability for breach-related costs.

Contract Search Terms

vendor oversight clausedata security requirementsGLBA Safeguards Rule compliancethird-party vendor managementconsumer data protectionbreach notification requirementsinformation security programaudit rightsencryption standardsrisk assessment

Laws Cited

Gramm-Leach-Bliley Act

Violation Types

Entity Details

Entity

Ascension Data & Analytics, LLC

Also known as: Ascension Data & Analytics

Industry

Financial Services

Official Sources

Source Evidence

Entity Name
"Texas-based Ascension Data & Analytics, LLC"
Laws Cited
"Gramm-Leach-Bliley Act’s Safeguards Rule"
Violation Types
"stored the contents of the documents on a cloud-based server in plain text, without any protections to block unauthorized access"

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