Zoom Settles $18 Million SEC Privacy Probe from 2020
Zoom Communications Inc. has made a substantial offer of $18 million to settle a longstanding investigation by the U.S. Securities and Exchange Commission (SEC) concerning its privacy policies and communications. The company reported setting aside this amount in the last quarter for a potential settlement with the SEC in a recent disclosure.
The SEC’s scrutiny into Zoom’s practices dates back to 2020, stemming from concerns about privacy policies, encryption methods, and how the company measured user engagement on its platform. This period coincided with a massive surge in Zoom’s popularity as a key tool for remote work during the pandemic, attracting attention from both users and regulatory bodies.
In addition to the SEC probe, Zoom also faced investigations in 2020 from two U.S. Attorneys concerning its dealings with foreign governments. These inquiries are still ongoing, as indicated in the recent filing by Zoom. Furthermore, in response to prior allegations about misleading users on security measures, Zoom committed to enhancing its security protocols in an agreement with the Federal Trade Commission in November 2020.
Notably, Zoom recently rebranded to signal its evolution beyond video conferencing and its intent to offer a broader range of business-oriented tools in the future.
It’s worth keeping an eye on how these developments will shape Zoom’s future trajectory in the competitive landscape of digital communications.
