Video conferencing company Zoom, which became a household name during the coronavirus pandemic, reached a settlement of $ 85million (£ 61million) in the United States.
A class action lawsuit accused the company of a series of privacy breaches by sharing millions of user data with Google, Facebook and LinkedIn.
He also alleged that Zoom misled users by claiming to offer end-to-end encryption in its video calls, and failed to put sufficient security in place to prevent so-called “zoombombing” incidents.
Last May, the UK’s National Crime Agency said it was investigating more than 120 cases in which the Zoom calls were hijacked with images of child sexual exploitation.
This announcement follows an incident in which children participating in a fitness class on Zoom were horrified when someone posted similar abuse footage to their session.
Zoom denied any wrongdoing in reaching the settlement, but agreed to strengthen security practices.
The preliminary settlement, filed over the weekend, requires the approval of a district judge.
This would make class members eligible for either a 15% refund on their basic membership or $ 25, whichever is greater. Others could receive up to $ 15.
Some of the new security measures introduced by Zoom include alerts when meeting hosts or other participants use third-party applications during a call.
The company is also committed to providing its employees with specialized training on data protection and privacy.
In a statement, Zoom said, “The privacy and security of our users is a top priority for Zoom, and we take the trust our users place in us seriously.
“We are proud of the progress we have made on our platform and look forward to continuing to innovate by putting privacy and security at the forefront. “