(Reuters) – Zoom Video Communications Inc must implement a new information security program as part of its proposed settlement with U.S. regulators over user privacy issues, the Federal Trade Commission said on Monday.
The FTC, in a statement, said the company would face fines of up to $43,280 for each future violation under the agreement.
The FTC said Zoom’s misleading claims gave users a false sense of security, especially those who used the company’s platform to discuss sensitive topics such as health and financial information.
The company did not immediately respond to a request for comment.
Zoom has been a big beneficiary of the coronavirus lockdowns, with millions of workers and students using its video platform as they work and study from home.
But the company has faced a backlash for failing to disclose that its service was not fully end-to-end encrypted, a method of securing communications so that only the sender and recipient can read the content. Zoom had said it planned to develop tools that would give meeting hosts more control and allow users to securely join a meeting.
Reporting by Susan Heavey; Editing by Chizu Nomiyama and Richard Chang