FTC-Zoom Consent Order: Implications For Remote Workforces

On November 9, 2020, the Federal Trade Commission (FTC) announced in a press release that it had reached a settlement with Zoom Video Communications, Inc. (Zoom) to resolve allegations that Zoom had engaged in unfair and deceptive acts with regard to its video conferencing services. Financial institutions and other companies that allowed remote workers to utilize this platform should carefully assess what impact this consent order may have and what changes may need to be made to protect virtual business meetings going forward.

The FTC alleged in its complaint that:

• Zoom deceptively marketed its services as offering “end-to-end, 256-bit encryption”, when in fact it provided a lower level of security. The FTC claimed that Zoom's misleading claims gave users a false sense of security when discussing sensitive topics such as financial information.