The FTC settled with Zoom for deceiving users about its encryption security and unfairly installing software that bypassed browser safeguards. Zoom must implement a comprehensive security program, undergo biennial audits, and is banned from making false security claims. No monetary penalty was imposed.
Zoom must establish and implement a comprehensive information security program with annual risk assessments, vulnerability management, multi-factor authentication, and data deletion controls. It is prohibited from making misrepresentations about privacy and security. The company must undergo biennial third-party security audits and notify the FTC of any data breaches.
In-house legal teams should review vendor, customer, and data processing agreements for clauses related to security representations, encryption standards, and software installation. Specifically, examine any warranties or descriptions of security features (e.g., 'end-to-end encryption'), terms governing the installation of additional software or plugins, and provisions requiring compliance with specific security programs or audits. Given the FTC's findings, agreements may need amendments to ensure all security claims are accurate and non-misleading, incorporate requirements for a comprehensive security program akin to Zoom's mandated program, and include explicit user consent mechanisms for any software that interacts with or bypasses browser safeguards. Additionally, audit rights and reporting obligations should be strengthened to align with the biennial audit requirement.
Entity
Zoom Video Communications, Inc.
Also known as: Zoom
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/11/ftc-requires-zoom-enhance-its-security-practices-part-settlement
1923167zoomacco2
https://www.ftc.gov/system/files/documents/cases/1923167zoomacco2.pdf
1923167zoomcomplaint
https://www.ftc.gov/system/files/documents/cases/1923167zoomcomplaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Zoom Video Communications, Inc."
"FTC Act"
"misled users by touting that it offered “end-to-end, 256-bit encryption”"
"secretly installed software, called a ZoomOpener web server"
The FTC finalized a settlement with Zoom Video Communications, Inc. for misleading consumers about its data security practices and compromising user security. The settlement requires Zoom to implement a comprehensive security program, review software updates for security flaws, and undergo biennial third-party assessments.
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.