Venmo settled FTC charges over failing to disclose information about fund transfer and privacy settings
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act | Federal Trade Commission.
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cdt.org
Paypal has settled charges from the Federal Trade Commission (FTC) that stated its popular money transferring app, Venmo, misled customers with confusing privacy settings.
consumerreports.org
In its settlement with the company, the FTC required Venmo to make its privacy settings “difficult to miss” and “easily understandable to ordinary consumers.
ftc.gov
Venmo settlement addresses availability of funds, privacy practices, and GLB | Federal Trade Commission
In addition, the FTC says Venmo violated the GLB Safeguards Rule by failing to have a comprehensive written information security program in place before August 2014 and by failing to implement safeguards to protect the security, confidentiality, and integrity of consumer data until at least March 2015.
Venmo settlement addresses availability of funds, privacy practices, and GLB
Many people reported that the company’s practices resulted in significant financial hardship – for example, not being able to pay their rent even though it appeared they had enough in their Venmo account to cover it.
ftc.gov
Venmo settlement addresses availability of funds, privacy practices, and GLB | Federal Trade Commission
Many people reported that the company’s practices resulted in significant financial hardship – for example, not being able to pay their rent even though it appeared they had enough in their Venmo account to cover it.
In addition, the FTC says Venmo violated the GLB Safeguards Rule by failing to have a comprehensive written information security program in place before August 2014 and by failing to implement safeguards to protect the security, confidentiality, and integrity of consumer data until at least March 2015.
Venmo settlement addresses availability of funds, privacy practices, and GLB
The complaint includes allegations that Venmo violated the Gramm-Leach-Bliley Privacy Rule by failing to provide users with a clear initial privacy notice, by failing to deliver it in a way that each consumer could reasonably be expected to receive it, and by distributing a notice that didn’t accurately reflect its practices.
ftc.gov
PRESS RELEASE: PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act
ftc.gov
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act
The FTC also alleges that, until at least March 2015, Venmo misrepresented the extent of security it provided to consumer financial accounts, claiming that it utilized “bank-grade security systems.” The FTC alleges, however, that through at least August 2014, Venmo did not have a written information security program.
In addition, Venmo misrepresented the extent to which consumers’ financial accounts were protected by “bank grade security systems,” and violated the Gramm-Leach-Bliley Act’s Safeguards and Privacy Rules, the complaint alleges.
According to the complaint, a Venmo consumer who limits their “default audience” for “future transactions” has not ensured that their transactions will remain private unless they also change a second setting.
Blog: Venmo settlement addresses availability of funds, privacy practices, and GLB
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act | Federal Trade Commission
“The payment service also misled consumers about how to keep their transaction information private. This case sends a strong message that financial institutions like Venmo need to focus on privacy and security from day one.”
Until at least March 2015, Venmo failed to notify users when their password or email address had been changed, or when a new device had been added to their account.
As part of the proposed settlement with the FTC, Venmo is prohibited from misrepresenting any material restrictions on the use of its service, the extent of control provided by any privacy settings, and the extent to which Venmo implements or adheres to a particular level of security.
Venmo is also required to make certain disclosures to consumers about its transaction and privacy practices, and is prohibited from violating the Privacy Rule and the Safeguards Rule.
ftc.gov
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act
As part of the settlement, Venmo is prohibited from misrepresenting any material restrictions on the use of its service, the extent of control provided by any privacy settings, and the extent to which Venmo implements or adheres to a particular level of security.
In addition, Venmo allegedly misrepresented the extent to which consumers’ financial accounts were protected by “bank grade security systems,” and violated the Gramm-Leach-Bliley Act’s Safeguards and Privacy Rules, according to the complaint.
Venmo also is required to make certain disclosures to consumers about its transaction and privacy practices, and is prohibited from violating the Privacy Rule and the Safeguards Rule.
ftc.gov
For example, Venmo failed to provide consumers with security notifications regarding changes to account settings from within the consumer’s Venmo account, including informing a consumer that her password or e-mail address had changed, that a new email address 9
ftc.gov
The order is designed to address the Complaint’s allegations that PayPal failed to adequately disclose the extent to which consumers could limit the visibility of their transactions to other Venmo users and that Venmo made deceptive statements about its practices for securing and protecting consumer financial accounts.
The proposed order requires Venmo, when making representations about fund availability, to clearly disclose to consumers that transactions are subject to review and that funds can be frozen or removed as a result of that review.
The co mplaint in this matter alleges that PayPal, operating as Venmo, misled consumers by notifying them that funds they received were available to transfer to their bank accounts, without disclosing that funds could still be frozen or removed when Venmo reviewed the consumers’ underlying transactions.
The pr oposed order requires Venmo, when making representations about fund availability, to clearly disclose to consumers that transactions are subject to review and that funds can be frozen or removed as a result of that review.
The complaint in this matter alleges that PayPal, operating as Venmo, misled consumers by notifying them that funds they received were available to transfer to their bank accounts, without disclosing that funds could still be frozen or removed when Venmo reviewed the consumers’ underlying transactions.
The FTC is similarly concerned that Venmo was not clear in its messaging to consumers about when funds could be withheld from them.
newschannel5.com
Venmo Settles Accusation Of Misleading Consumers
The online peer-to-peer payment app, Venmo, reached a settlement with the Federal Trade Commission after the company was accused of misleading consumers and lax security measures that led to fraud.
Venmo admitted it wasn't always upfront with consumers about what it was doing with their accounts. The company reached reached a settlement with the Federal Trade Commission after the company was accused of misleading consumers and lax security measures that led to fraud.