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.
Zoom must implement and maintain a comprehensive security program, review software updates for security flaws before release to ensure they don't hamper third-party security features, obtain biennial independent third-party assessments of its security program, and notify the FTC of any data breaches.
In-house legal teams should review all vendor and customer agreements, particularly those involving software-as-a-service (SaaS) or platform provisions where data security is a material term. Specific clauses to audit include representations and warranties regarding data security measures, obligations to review and test software updates for vulnerabilities, requirements to maintain a documented security program, and breach notification procedures. Agreements may need amendments to explicitly require compliance with a comprehensive, FTC-approved security program, mandate pre-release security testing for updates to prevent degradation of third-party security features, and incorporate obligations for independent biennial security audits. Teams should also ensure contracts with sub-processors or downstream vendors reflect these heightened security obligations.
Entity
Zoom Video Communications, Inc.
Also known as: Zoom
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/02/ftc-gives-final-approval-settlement-zoom-over-allegations-company-misled-consumers-about-its-data
1923167 c 4731 zoom final order
https://www.ftc.gov/system/files/documents/cases/1923167_c-4731_zoom_final_order.pdf
ftc requires zoom enhance its security practices part settle
https://www.ftc.gov/news-events/news/press-releases/2020/11/ftc-requires-zoom-enhance-its-security-practices-part-settlement
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Zoom Video Communications, Inc."
"allegations it misled consumers about the level of security it provided for its Zoom meetings and compromised the security of some Mac users."
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.
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.
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.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.