Zoom has agreed to pay $85 million to settle claims that it lied about offering end-to-end encryption and gave user data to Facebook and Google without the consent of users. The settlement between Zoom and the filers of a class-action lawsuit also covers security problems that led to rampant “Zoombombings. ”
The proposed settlement would generally give Zoom users $15 or $25 each and was filed Saturday at US District Court for the Northern District of California. It came nine months after Zoom agreed to security improvements and a “prohibition on privacy and security misrepresentations” in a settlement with the Federal Trade Commission, but the FTC settlement didn’t include compensation for customers.
As we wrote in November , the FTC said that Zoom claimed it offers end-to-end encryption in its June 2016 and July 2017 HIPAA compliance guides, in a January 2019 white paper, in an April 2017 blog post, and in direct responses to inquiries from customers and potential customers. In reality, “Zoom did not provide end-to-end encryption for any Zoom Meeting that was conducted outside of Zoom’s ‘Connecter’ product (which are hosted on a customer’s own servers), because Zoom’s servers—including some located in China—maintain the cryptographic keys that would allow Zoom to access the content of its customers’ Zoom Meetings, ” the FTC said. In real end-to-end security, only the users themselves have access to the keys needed to decrypt content.