Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

The FTC Snapchat Settlement and Your Company's Privacy Policies

Author: Scarinci Hollenbeck, LLC

Date: June 13, 2014

Key Contacts

Back

As it turns out, Snapchat messages do stick around. While this may not mean much to those over the age of 25, the company’s resulting settlement with the Federal Trade Commission (FTC) offers several useful lessons for New York and New Jersey businesses.

The FTC Snapchat Settlement and Your Company’s Privacy Policies

Snapchat is a mobile messaging application that allows users to send photos, video, and texts that have a predetermined shelf life of one to ten seconds. After the set time limit expires, the messages are supposed to “disappear forever” after being deleted from the recipient’s device and Snapchat’s servers.

The FTC Complaint
In its complaint, the FTC alleged that the messages could be retained in several ways. Recipients can take screenshots of the message, use third party apps to view and save messages, and access video messages stored outside the app’s “sandbox” by connecting the device to a computer.

The agency further maintained that Snapchat deceived consumers over the amount of personal data it collected. For instance, although the company’s privacy policy stated that it did not “ask for, track, or access any location-specific information from [a user’s] device at any time,” geolocation information was collected from Android users’ who activated the “Find Friends” feature. The app also collected iOS users’ contact information from their address books without notice or consent.

The FTC also alleged that Snapchat failed to take proper security measures to protect user data from misuse and unauthorized disclosure. During a recent attack, hackers were able to breach the app’s Find Friends feature and access a database of 4.6 million Snapchat usernames and phone numbers.

The Terms of the Settlement Agreement
Under the terms of its settlement agreement with the FTC, Snapchat is prohibited from “misrepresenting the extent to which it maintains the privacy, security, or confidentiality of users’ information.”  The app company will also be required to implement a comprehensive privacy program that will be monitored by an independent privacy professional for the next 20 years.

The Message for New York and New Jersey Businesses
According to the FTC, the Snapchat enforcement action is part of an ongoing crackdown on mobile app privacy.

“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.”

As this case highlights, privacy policies cannot be an afterthought when designing a mobile application. Companies must carefully consider how they will collect and protect consumers’ personal information and follow through with those promises.

If you have any questions about this post or would like to discuss the issues involved, please contact me, Fernando M. Pinguelo, or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouseWatch.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey post image

Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey

For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]

Author: Nicholas Wall

Link to post with title - "Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey"
What Business Owners Get Wrong Before Meeting a Litigation Attorney post image

What Business Owners Get Wrong Before Meeting a Litigation Attorney

What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]

Author: Michael Mietlicki

Link to post with title - "What Business Owners Get Wrong Before Meeting a Litigation Attorney"
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract post image

Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract

Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]

Author: Graham Staton

Link to post with title - "Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract"
Can You Own Part of a New Jersey Business Without a Written Agreement? post image

Can You Own Part of a New Jersey Business Without a Written Agreement?

Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]

Author: Michael Mietlicki

Link to post with title - "Can You Own Part of a New Jersey Business Without a Written Agreement?"
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One post image

Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One

For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]

Author: Sean M. Pena

Link to post with title - "Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One"
Monmouth County's Next Development Wave: What Developers and Investors Need to Know post image

Monmouth County's Next Development Wave: What Developers and Investors Need to Know

Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]

Author: Donald M. Pepe

Link to post with title - "Monmouth County's Next Development Wave: What Developers and Investors Need to Know"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!