Zoom to fork out millions to settle data privacy lawsuitWednesday, August 04, 2021
Zoom Video Communications Inc has agreed to pay US$85 million to settle a US class-action privacy lawsuit that accused the company of violating user privacy and allowing others to jump into Zoom calls.
According to BBC News, the lawsuit alleged that Zoom shared the data of millions of users with Facebook Inc, Google LLC and LinkedIn. Further, it was alleged that the company, despite offering end-to-end encryption, failed to act on 'zoombombing,' wherein third-party users accessed Zoom calls to disrupt them, often with graphic or disturbing content.
The lawsuit was filed on behalf of Zoom Meetings paid subscribers in the United States, as well as free users.
The preliminary settlement, which also includes a provision that Zoom will give its staff specialised training in data handling and privacy, is still subject to approval by US District Judge Lucy Koh in San Jose, California.
If approved, paid subscribers in the class-action lawsuit are eligible for 15 per cent refunds on their Zoom core subscriptions, or US$25 — whichever amount is larger — and other Zoom users could be eligible for up to US$15, according to the settlement.
According to the plaintiff's lawyers, US Zoom subscribers generated US$1.3 billion in revenues for the video-conferencing firm.
The firm denied any wrongdoing, but has agreed to boost its security practices.
Per a statement made by a company spokesman to BBC News, the privacy and security of Zoom's customers are the company's top priorities.
“We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront,” the Zoom spokesman said.
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