Zoom settles FTC allegations over its encryption; ZM shares plunge

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The company also agreed that it will no longer make any misrepresentation about its privacy, security features, and practices. It also agreed to retain an independent third-party to assess its security program every other year.

In a statement, FTC Bureau of Consumer Protection Director Andrew Smith said, “During the pandemic, practically everyone—families, schools, social groups, businesses—is using videoconferencing to communicate, making the security of these platforms more critical than ever. Zoom’s security practices didn’t line up with its promises, and this action will help to make sure that Zoom meetings and data about Zoom users are protected.”

Zoom is still facing a class-action lawsuit filed by Consumer Watchdog, which made similar allegations against the company.

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