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Home»Lifestyle»Travel
Travel

Marriott under investigation by FTC for data security practices, agrees to pay $52 million to resolve allegations

October 9, 2024No Comments3 Mins Read
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Marriott has reached a settlement with the U.S. Federal Trade Commission (FTC) and 49 states and D.C. to put in place a new data security program following three breaches from 2014 to 2020 that affected over 300 million people worldwide. As part of the resolutions, Marriott will continue implementing enhancements to its data privacy and information security programs. The company has agreed to allow U.S. customers to request the deletion of personal information linked to email or loyalty accounts, review loyalty accounts upon request, and restore any stolen points. Marriott stresses that protecting guests’ personal data remains a top priority for the company, and they make no admission of liability.

The $52 million settlement with the FTC and state attorneys general comes after a database security incident in 2018 in the guest reservations system of Starwood, a hotel group that Marriott had recently acquired. The company has faced backlash from customers and the U.S. government over the breaches, prompting them to take action to enhance data security practices across its hotel network. The settlement also follows a 2020 class-action lawsuit filed in London demanding compensation for one of the largest data breaches in history, further emphasizing the need for Marriott to improve its security measures.

Marriott’s agreement to provide U.S. customers with the ability to request the deletion of personal information and review loyalty accounts is a step in the right direction to regain customer trust and ensure the protection of their data. The company’s commitment to implementing enhancements to its data privacy and information security programs demonstrates their dedication to safeguarding guest information. By allowing for the restoration of stolen points and conducting reviews of loyalty accounts upon request, Marriott aims to address any concerns customers may have about the security of their personal data.

The Skift Travel 200 (ST200) tracks the performance of nearly 200 travel companies, including hotels and short-term rental sector stocks, worth over a trillion dollars in the global market. The index includes companies publicly traded across global markets, such as international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The index provides insights into the financial performance of these companies and offers a comprehensive overview of the accommodations sector stock index performance year-to-date.

Overall, Marriott’s settlements with the FTC and state attorneys general, along with the implementation of new data security measures and the introduction of customer initiatives to protect personal information, showcase the company’s dedication to enhancing data privacy and security. By addressing concerns raised by customers and regulatory bodies, Marriott is taking proactive steps to improve its security practices and prevent future data breaches. As Marriott moves forward, demonstrating improved data security practices across its hotel network will be essential in rebuilding trust with customers and ensuring the protection of their personal data.

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