The FTC finalized a settlement with Zoom Video Communications, Inc. for misleading consumers about its data security practices and compromising user security. The settlement requires Zoom to implement a comprehensive security program, review software updates for security flaws, and undergo biennial third-party assessments.
Zoom must implement and maintain a comprehensive security program, review software updates for security flaws before release to ensure they don't hamper third-party security features, obtain biennial independent third-party assessments of its security program, and notify the FTC of any data breaches.
In-house legal teams should review all vendor and customer agreements, particularly those involving software-as-a-service (SaaS) or platform provisions where data security is a material term. Specific clauses to audit include representations and warranties regarding data security measures, obligations to review and test software updates for vulnerabilities, requirements to maintain a documented security program, and breach notification procedures. Agreements may need amendments to explicitly require compliance with a comprehensive, FTC-approved security program, mandate pre-release security testing for updates to prevent degradation of third-party security features, and incorporate obligations for independent biennial security audits. Teams should also ensure contracts with sub-processors or downstream vendors reflect these heightened security obligations.
Entity
Zoom Video Communications, Inc.
Also known as: Zoom
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/02/ftc-gives-final-approval-settlement-zoom-over-allegations-company-misled-consumers-about-its-data
1923167 c 4731 zoom final order
https://www.ftc.gov/system/files/documents/cases/1923167_c-4731_zoom_final_order.pdf
ftc requires zoom enhance its security practices part settle
https://www.ftc.gov/news-events/news/press-releases/2020/11/ftc-requires-zoom-enhance-its-security-practices-part-settlement
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Zoom Video Communications, Inc."
"allegations it misled consumers about the level of security it provided for its Zoom meetings and compromised the security of some Mac users."
The FTC settled with Zoom for deceiving users about its encryption security and unfairly installing software that bypassed browser safeguards. Zoom must implement a comprehensive security program, undergo biennial audits, and is banned from making false security claims. No monetary penalty was imposed.
The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.
The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.
$2.5B
A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.
$225.0M
The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.
$100.0M
FleetCor Technologies Inc. (now Corpay Inc.) and its CEO Ronald Clarke agreed to pay $100 million to settle an FTC administrative action alleging the company charged small business customers hidden and unauthorized fees for fuel cards and misrepresented gas savings, fraud-control features, and fees. A federal district court granted the FTC summary judgment on all counts in 2023, and a federal appeals court upheld that judgment and the permanent injunction in 2026. The settlement funds will be used to provide redress to harmed business customers.