Zoom to Get Closer Scrutiny Under FTC Settlement

By Aaron Tilley

The Federal Trade Commission Monday said it had settled a case with Zoom Video Communications Inc. over how the videoconferencing platform that has enjoyed mass popularity during the pandemic handles user privacy.

The FTC, in its complaint, alleged that Zoom for at least the past four years promised users a level of data encryption it doesn't provide. The company has previously said it was working to improve its encryption levels to help safeguard data.

As part of the settlement, Zoom employees will have to review its product for any security flaws and obtain a third-party assessment of its progress every other year

"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," Andrew Smith, director of the FTC's Bureau of Consumer Protection, said.

Zoom didn't immediately respond to a request for comment.

The company that went public last year acknowledged over the summer shortcomings with some of its security practices and promised improvements.

Zoom shares were down 12% Monday morning both on the FTC development and progress on a Covid-19 vaccine that has lifted the broader market. The coronavirus pandemic has seen Zoom use surge during the health crisis.

Write to Aaron Tilley at aaron.tilley@wsj.com

(END) Dow Jones Newswires

November 09, 2020 11:58 ET (16:58 GMT)

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