Snapchat has entered into a consent decree with the FTC to address charges of misuse of customer information and has agreed to destroy images and messages shared while using the service.
Snapchat, the renowned mobile messaging app, has agreed to settle with the Federal Trade Commission claims of deceiving its customers about the self-destructive messaging feature. In reality, the company falsified claims over the amount of data it collected from users and the security measures taken to protect from misuse and unauthorized access.
As part of the settlement with the FTC, Snapchat has agreed for a more transparent relationship with its customers and it will implement a privacy program that will be monitored by a third-party audit company for the next 20 years. FTC is not charging Snapchat with any fines.
The FTC announced the agreement with Snapchat, Thursday, in an official blog post. The commission also highlighted that the snaps shared on the service can be saved using third party apps without user's knowledge and the video messages remained accessible when recipients connected their smartphone to a computer. FTC also found that the Snapchat app collected data such as geo-location information on Android and contacts on iOS devices, without users' consent or knowledge.
The company recently updated its mobile app to add text messaging and video messaging functions, a move aimed at taking on big players such as WhatsApp.
The consent decree did not require Snapchat to admit the fault but if the company violates the terms of the agreement in the future, it could face financial penalties. The company acknowledged the matter and said it had updated its privacy policy, app description and notification to users.
"While we were focused on building, some things didn't get the attention they could have," the company said in a blog post, Thursday. "One of those was being more precise with how we communicated with the Snapchat community. This morning we entered into a consent decree with the FTC that addresses concerns raised by the commission. Even before today's consent decree was announced, we had resolved most of those concerns over the past year by improving the wording of our privacy policy, app description, and in-app just-in-time notifications. And we continue to invest heavily in security and countermeasures to prevent abuse."
FTC's action against Snapchat marks an example to other tech companies in the field that misleading customers about how their information is used and stored, can result in severe penalties from the U.S. commission group.
