The FTC just announced that Snapchat has settled charges that it deceived users. Specifically, the FTC said Snapchat’s promise of disappearing photo messages was “false.”
The charges also allege that Snapchat collected address book information without users’ consents, and that the app allowed video messages to be stored and accessed on a recipient’s phone. It also said that Snapchat failed to secure its “Find Friends” feature, which resulted in a security breach that affected more than 4 million users’ accounts.
As a result of the settlement, Snapchat will have to implement an in-depth privacy program and it wil lbe monitored by a privacy professional for 20 years.
Snapchat’s blog post included the following statement:
Here’s the release from the FTC, and Snapchat’s blog post about it below:
From the FTC:
Snapchat, the developer of a popular mobile messaging app, has agreed to settle Federal Trade Commission charges that it deceived consumers with promises about the disappearing nature of messages sent through the service. The FTC case also alleged that the company deceived consumers over the amount of personal data it collected and the security measures taken to protect that data from misuse and unauthorised disclosure. In fact, the case alleges, Snapchat’s failure to secure its Find Friends feature resulted in a security breach that enabled attackers to compile a database of 4.6 million Snapchat usernames and phone numbers.
According to the FTC’s complaint, Snapchat made multiple misrepresentations to consumers about its product that stood in stark contrast to how the app actually worked.
“If a company markets privacy and security as key selling points in pitching its service to consumers, it is critical that it keep those promises,” said FTC Chairwoman Edith Ramirez. “Any company that makes misrepresentations to consumers about its privacy and security practices risks FTC action.”
Touting the “ephemeral” nature of “snaps,” the term used to describe photo and video messages sent via the app, Snapchat marketed the app’s central feature as the user’s ability to send snaps that would “disappear forever” after the sender-designated time period expired. Despite Snapchat’s claims, the complaint describes several simple ways that recipients could save snaps indefinitely.
Consumers can, for example, use third-party apps to log into the Snapchat service, according to the complaint. Because the service’s deletion feature only functions in the official Snapchat app, recipients can use these widely available third-party apps to view and save snaps indefinitely. Indeed, such third-party apps have been downloaded millions of times. Despite a security researcher warning the company about this possibility, the complaint alleges, Snapchat continued to misrepresent that the sender controls how long a recipient can view a snap.
In addition, the complaint alleges:
- That Snapchat stored video snaps unencrypted on the recipient’s device in a location outside the app’s “sandbox,” meaning that the videos remained accessible to recipients who simply connected their device to a computer and accessed the video messages through the device’s file directory.
- That Snapchat deceptively told its users that the sender would be notified if a recipient took a screenshot of a snap. In fact, any recipient with an Apple device that has an operating system pre-dating iOS 7 can use a simple method to evade the app’s screenshot detection, and the app will not notify the sender.
Finally, the FTC alleges that despite the company’s claims about taking reasonable security steps, Snapchat failed to secure its “Find Friends” feature.
For example, the complaint alleges that numerous consumers complained that they had sent snaps to someone under the false impression that they were communicating with a friend. In fact, because Snapchat failed to verify users’ phone numbers during registration, these consumers were actually sending their personal snaps to complete strangers who had registered with phone numbers that did not belong to them.
Moreover as noted above, the complaint alleges that Snapchat’s failure to secure its Find Friends feature resulted in a security breach permitting attackers to compile a database of 4.6 million Snapchat usernames and phone numbers. According to the FTC, the exposure of this information could lead to costly spam, phishing, and other unsolicited communications.
The settlement with Snapchat is part of the FTC’s ongoing effort to ensure that companies market their apps truthfully and keep their privacy promises to consumers. Under the terms of its settlement with the FTC, Snapchat will be prohibited from misrepresenting the extent to which it maintains the privacy, security, or confidentiality of users’ information. In addition, the company will be required to implement a comprehensive privacy program that will be monitored by an independent privacy professional for the next 20 years.
This case is part of a multi-national enforcement sweep on mobile app privacy by members of the Global Privacy Enforcement Network, a cross-border coalition of privacy enforcement authorities. The case is also coordinated with the Asia Pacific Privacy Priorities forum’s Privacy Awareness Week.
The Commission vote to accept the consent order for public comment was 5-0.
The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through June 9, 2014, after which the Commission will decide whether to make the proposed consent order final. Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section. Comments in electronic form should be submitted online.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $US16,000.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
When we started building Snapchat, we were focused on developing a unique, fast, and fun way to communicate with photos. We learned a lot during those early days. One of the ways we learned was by making mistakes, acknowledging them, and fixing them.
We are devoted to promoting user privacy and giving Snapchatters control over how and with whom they communicate. That’s something we’ve always taken seriously, and always will.
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