Zoom to enhance security as part of proposed U.S. settlement with FTC
By Susan Heavey and Nandita Bose WASHINGTON (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 said in a statement that the company would face fines of up to $43,280 for each future violation under the agreement
By Susan Heavey and Nandita Bose
WASHINGTON (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 said in a statement that the company would face fines of up to $43,280 for each future violation under the agreement.
It said Zoom's misleading claims about offering users a secure channel of communication while offering a lower level of protection gave a false sense of security, especially for those who used the company's platform to discuss sensitive topics such as health and financial information.
"Zoom's security practices didn't line up with its promises," said Andrew Smith, director of the FTC's Bureau of Consumer Protection.
The company's stock, which has climbed sharply this year, skidded more than 11.6% in midday trading, to $442.
A company spokeswoman said the security of its users is a top priority for Zoom. "We have already addressed the issues identified by the FTC," she said.
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. Its user base has risen from 10 million in December 2019 to 300 million in April 2020 during the COVID-19 pandemic, the agency said.
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 join a meeting securely.
(Reporting by Susan Heavey and Nadita Bose; Editing by Chizu Nomiyama, Richard Chang and Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe
By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion
By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.