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Zoom Ordered to Beef Up Security by FTC

Computer security or safety concept. Laptop keyboard with lock and chain. 3d
By Ashley Ravid on November 12, 2020

Before the start of the coronavirus pandemic, few had heard of Zoom. Now the video-conferencing service has become a regular part of daily life for scores of people across the globe because of its suitability for socially distanced meetings and its secure service ... or so people thought.

Zooming Into Trouble

Back in May, the U.S. Federal Trade Commission announced that it was investigating Zoom's security practices after numerous privacy concerns arose. Though Zoom promised users that its platform was end-to-end encrypted, meaning Zoom itself would not have access to individual users' Zoom communications, it had lied about its access to private data.

As part of a new settlement with the FTC, Zoom will upgrade its security and will pay a fine of up to $43,280 for each future breach. The company was also ordered to be truthful about the realities of its security going forward. Zoom stock dropped 13% after the FTC announcement, though the company was not fined by the FTC.

Repeat Offenses

Over the last several months, class action lawsuits have been filed against Zoom over its failure to disclose its true level of security. This is not the company's first time in hot water. In March 2020, backlash led to the discontinuation of a Zoom feature that sent customers' information — including login times and locations — to Facebook.

Online privacy and its regulation continues to be one of the most prominent emerging issues facing both governments and big tech companies. If you have concerns about your internet privacy rights being violated, a cyberspace law attorney may be able to help you keep your data safe.

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