FTC Settlement with Zoom Concerning Alleged Data-Security Lapses

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On November 9, 2020, the United States Federal Trade Commission (FTC) announced that it had entered into a consent agreement, subject to final approval, with videoconferencing company Zoom Video Communications, Inc. (Zoom). The consent agreement settles allegations that Zoom engaged in a series of deceptive and unfair practices that undermined the security of its users. The Commission voted 3–2 to accept the settlement, with Commissioners Chopra and Slaughter voting no and issuing dissenting statements asserting that the FTC’s action did not go far enough.

While the FTC generally does not identify what triggers a law enforcement action, there have been many news articles and a number of class actions filed in connection with Zoom’s data-security practices over the past six months that likely led to this action.

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Eleventh Circuit Vacates FTC LabMD Order but Does Not Challenge FTC Authority

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The U.S. Circuit Court of Appeals for the 11th Circuit vacated the LabMD Federal Trade Commission order but did not challenge the Commission’s ability to use its unfairness authority to challenge inadequate data security practices in  a closely watched case that tested the commission’s enforcement powers.

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