Uber agrees to privacy audits after FTC case over who sees travel records

Uber will implement a comprehensive privacy program as part of a settlement with the Federal Trade Commission on claims it failed to monitor access to consumer information by employees.

In a statement released Tuesday, the FTC said the ride-hailing service will also subject itself to independent audits for the next 20 years to verify its use of the privacy program.

"Uber failed consumers in two key ways: First by misrepresenting the extent to which it monitored its employees’ access to personal information about users and drivers, and second by misrepresenting that it took reasonable steps to secure that data," said acting FTC chairman Maureen K. Ohlhausen in a statement.

The FTC claims stem from an incident in 2014, when Uber revealed it was investigating an executive for allegedly tracking the travel records of a journalist without her permission. The revelation followed a report from Forbes that Uber employees used a tool called "God view" to track VIP users.

The FTC complaint Uber settled claimed the company did not secure cloud data on consumers closely enough.

"We are pleased to bring the FTC’s investigation to a close," said Uber in a statement. "The complaint involved practices that date as far back as 2014. We’ve significantly strengthened our privacy and data security practices since then and will continue to invest heavily in these programs."

The privacy settlement with the FTC follows a string of missteps by the ride-hailing giant, ultimately leading to the ouster of founder and CEO Travis Kalanick over concern of a toxic internal culture.

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In June, a woman who was raped by a driver in India in 2014 filed a lawsuit against Uber after learning Kalanick and two other executives allegedly obtained her medical records without permission.

Last week, Uber investor Benchmark Capital sued Kalanick, alleging fraudulent attempts at boosting his power over the company. Kalanick, through a representative, has said the lawsuit is "completely without merit."

Follow Brett Molina on Twitter: @brettmolina23.