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Zoom agrees to $85m settlement for consumer privacy violations, ‘Zoombombing’

Zoombombing Photo: Maqow.Com

*Zoom Video Communications Incorporated has been accused of sharing personal data with Facebook, Google and LinkedIn, and letting hackers to disrupt Zoom meetings

*Company denies any wrongdoings but agrees to settle while assuring consumers the privacy and security of its users are top priorities

Isola Moses | ConsumerConnect

For violating users’ privacy rights and misleading consumers about encryption security by sharing data through third-party integrations without adequate notice or consent, Zoom Video Communications Incorporated, otherwise known as “Zoom”, has agreed to pay $85 million to settle a class action suit.

ConsumerConnect gathered that concerned groups have alleged that Zoom violated users’ privacy rights by deceiving consumers about encryption security, sharing data through third-party integrations without consent, and failing to protect private meetings from disruptions.

The publication had reported that the tech company was accused of sharing personal data with Facebook, Google and LinkedIn, and letting hackers disrupt Zoom meetings in a practice tagged, “Zoombombing”.

A recent preliminary settlement filed requires approval by District Judge Lucy Koh, in San Jose, California, United States (US).

The case is In re: Zoom Video Communications Incoporated Privacy Litigation, US District Court, Northern District of California, No. 20-02155.

Subscribers in the proposed class action, report stated, will be eligible for 15 percent refunds on their core subscriptions or $25, whichever is larger, while others could receive up to $15, report said.

Zoom has also agreed to effect security measures, including alerting consumers when meeting hosts or other participants use third-party apps in meetings, and to provide specialised training to employees on privacy and data handling henceforth.

Zoom denies any wrongdoings but agrees to compensations

The San Jose-based tech company, however, has denied wrongdoing while agreeing to settle with the affected consumers.

Zoom in a statement said: “The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.”

The settlement came after Koh March 11 let the plaintiffs pursue some contract-based claims for alleged infractions by the company.

Though Zoom collected about $1.3billion in Zoom Meetings subscriptions from class members, the plaintiffs’ lawyers called the $85million settlement reasonable, given the litigation risks, agency report said.

They intend to seek up to $21.25 million for legal fees.

What is ‘Zoombombing’?

ConsumerConnect reports Zoombombing is where outsiders hijack ongoing Zoom meetings and display pornography, use racist language, or post other disturbing content real time.

Justice Koh said Zoom was “mostly” immune to Zoombombing under Section 230 of the Federal Communications Decency Act, which shields online platforms from liability over user content.

Report indicates that Zoom’s customer base has grown sixfold since the outbreak of COVID-19 pandemic December 2019 forced more people to work from home (WFH) across the globe.

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