Zoom lied in 2020 about the encryption it used, and now wants to buy off consequences in the U.S. with an $18 million settlement.
Zoom wants to pay $18 million to the U.S. SEC to settle a case involving encryption. That dates back to the start of the corona pandemic, and relates to false claims the video chat company made then.
In 2020, Covid single-handedly put Zoom on the map. The company was able to capitalize on the need for digital connectivity like no other, leaving existing solutions such as Skype far behind. Rapid growth was a priority, security somewhat less so. Still, Zoom claimed video calls through its platform were end-to-end encrypted. Only: that wasn’t true.
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Zoom wants to buy off old privacy lies with $18 million penalty money
Multiple arrangements
The false claim triggered a lawsuit, in which Zoom settled for $85 million. In the U.S., however, a second investigation surrounding the company’s 2020 privacy policy, initiated by the Securities and Exchange Commission (SEC), is ongoing. Zoom would like to buy out that case as well, Bloomberg knows, and for $18 million.
Zoom’s proposal to the SEC would be attractive, but has yet to be formally approved.