Consumers Affected
40,000,000
The FTC finalized an order against Chegg Inc. for failing to secure student data, leading to breaches that exposed personal information of about 40 million users and employees. Chegg must implement a comprehensive security program, limit data collection, offer multifactor authentication, and allow data access and deletion.
Chegg is required to implement a comprehensive information security program, limit the data it collects and retains, provide multifactor authentication to users, and allow users to request access to and deletion of their data.
In-house legal teams should review all vendor and customer agreements, particularly those with educational institutions or directly with students/parents, for clauses governing data security, breach notification, data minimization, and user rights. Specific clauses to scrutinize include data security requirements, encryption standards, password management, data retention and deletion policies, and provisions allowing user access or deletion requests. Given the order's focus on limiting data collection and offering multifactor authentication, contracts may need amendments to mandate MFA for account access, impose stricter data collection and retention limits, require robust encryption (including for stored data and passwords), and establish clear processes for user data access and deletion requests. Employment agreements handling employee personal and medical information should also be reviewed for adequate data protection safeguards.
Entity
Chegg Inc.
Also known as: Chegg
Industry
EducationOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-finalizes-order-ed-tech-provider-chegg-lax-security-exposed-student-data
Chegg DecisionandOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/Chegg-DecisionandOrder.pdf
ftc brings action against ed tech provider chegg careless se
https://www.ftc.gov/news-events/news/press-releases/2022/10/ftc-brings-action-against-ed-tech-provider-chegg-careless-security-exposed-personal-data-millions
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Chegg Inc."
"careless data security practices"
"Exposed Student Data"
"medical information about Chegg employees"
"about 40 million users and employees"
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$106.8M
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