Zoom.us to pay $85M for Settlement for Violating user privacy
Zoom.us will pay $85 million to settle a lawsuit alleging the videoconferencing service violated users’ privacy and allowed hackers to infiltrate chats.
As Reuters reports, a preliminary settlement also requires tougher security measures following claims that Zoom shared personal data with Facebook, Google, and LinkedIn. The company agreed that it would notify users when they use third-party apps to conduct meetings and provide training for employees on data handling and privacy.
Zoom was founded in 2011 and became the most popular video teleconferencing platform during the COVID-19 pandemic. Zoom’s popularity grew as people began to use it for remote work, education, and social relations online. By April 2020, the term “Zoom-bombing” had entered the public lexicon as calls were routinely hijacked by internet trolls looking to cause havoc.
U.S. District Judge Lucy Koh stated that Zoom is “mostly” protected from claims of Zoom-bombing based on Section 230 Federal Communications Decency Act. This federal statute protects online platforms against liability for user content.
Members of a class action lawsuit may be eligible for a payout. However, don’t expect huge sums. Zoom subscribers would be eligible to receive a 15% refund or $25, whichever is greater. All other members could be eligible for as little as $15. The lawyers, however, plan to demand up to $21.25 millions in legal fees.
Zoom stated that it denies any wrongdoing and said that privacy and security are its top priorities. It also noted that the company values the trust of users. Zoom acquired Keybase in May 2020 to assist in the creation of encryption for video sessions. The feature was eventually launched for both free and for paid users in October.
