Settlement Proposal
Zoom Communications Inc. has stepped forward with an $18 million settlement proposal aimed at closing a privacy investigation launched by the U.S. Securities and Exchange Commission (SEC) four years ago.
This inquiry centers on the company’s privacy practices and how it manages communication protocols.
In a recent announcement, Zoom disclosed that it has recorded this amount as an expense related to a “tentative settlement offer” with the SEC.
A company representative indicated that this agreement is still pending approval from the regulatory agency.
SEC Inquiry Details
The SEC’s investigation, which kicked off in 2020, scrutinized various aspects of Zoom’s operations, including its privacy protocols, encryption methods, and the fidelity of its usage statistics.
The inquiry came in the wake of a dramatic uptick in Zoom’s users, as its videoconferencing services became indispensable for remote interactions throughout the pandemic.
As the user base swelled, it drew the attention of regulators.
Besides the SEC’s probe, Zoom is also dealing with subpoenas from two U.S. attorneys linked to its interactions with foreign governments; these inquiries are still active, according to the company’s statements.
Earlier in November, Zoom reached a settlement with the Federal Trade Commission, agreeing to bolster its security measures following accusations of misleading users regarding the accessibility and privacy of their meetings.
Rebranding Initiatives
On a different note, Zoom recently announced a major rebranding initiative.
The company is shifting its identity to emphasize its aspirations to move beyond videoconferencing and to broaden its range of business solutions.
Source: Insurancejournal.com
