Investigation of Zoom Video Commuications
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Zoom Video Communications, Inc. (ZM) Enters Settlement With the Federal Trade Commission
The FTC brought a complaint against Zoom alleging that it engaged in deceptive and unfair business practices that undermined the security of its users. Since at least 2016, Zoom misled users by touting that it offered “end-to-end, 256-bit encryption” to secure users’ communications, when it actually provided a lower level of security and even maintained the cryptographic keys that could allow Zoom to access the content of its customers’ meetings. According to the FTC, these claims gave users a false sense of security, especially for those using the platform to discuss health and financial information.
Zoom shares dropped in response to the FTC’s announcement of the settlement.