Updated: Snapchat Settles FTC Deceptive Advertising Charges | Practical Law

Updated: Snapchat Settles FTC Deceptive Advertising Charges | Practical Law

Snapchat has settled FTC charges that it deceived consumers about the efficacy and security of Snapchat messages.

Updated: Snapchat Settles FTC Deceptive Advertising Charges

Practical Law Legal Update 0-567-8689 (Approx. 4 pages)

Updated: Snapchat Settles FTC Deceptive Advertising Charges

by Practical Law Commercial
Published on 02 Jan 2015 • USA (National/Federal)
Snapchat has settled FTC charges that it deceived consumers about the efficacy and security of Snapchat messages.
On May 8, 2014, the Federal Trade Commission (FTC) announced that it has reached a proposed settlement with Snapchat over charges that Snapchat made multiple misrepresentations to consumers about its product. The FTC alleged that Snapchat, among other things, deceived consumers about:
  • A user's ability to send pictures or texts ("snaps") that would "disappear forever" after a certain time period, even though there are actually several simple ways for recipients to save snaps indefinitely.
  • Its security measures for protecting personal data from misuse and unauthorized disclosure.
  • The amount of personal data it collected from users.
The FTC also alleged that Snapchat collected iOS users' contacts information from their address books without notice or consent.
As part of the settlement, Snapchat:
  • Is prohibited from misrepresenting the extent to which it maintains the privacy, security or confidentiality of users' information.
  • Must implement a comprehensive privacy program that an independent privacy professional will monitor for the next 20 years.
The settlement is subject to public comment until June 9, 2014. After that date, the FTC will decide whether to make the proposed consent order final.

Update

On December 31, 2014, the FTC issued a press release to announce that it has voted to approve a final order based on its May 2014 proposed settlement with Snapchat.
The settlement with Snapchat is part of the FTC's on-going effort to ensure that companies market their mobile applications truthfully and adhere to the privacy promises they make to consumers.
For more information on the FTC's advertising rules for mobile applications, see Practice Notes, Online Advertising and Marketing and Advertising: Overview.