Snapchat 'misled users over data'

Snapchat has agreed to settle with the US Federal Trade Commission (FTC) over charges that it deceived customers about the disappearing nature of messages sent through its service and collected users’ contacts without telling them or asking permission.

Snapchat is a popular mobile messaging app that lets people send photos, videos and messages which disappear in a few seconds. But the FTC said Snapchat misled users about its data collection methods and failed to tell users that others could save their messages without their knowledge.

Snapchat has said that it notifies users when a recipient takes a screenshot of a “snap” they have sent. But the FTC said recipients with an Apple device which runs an operating system that predates iOS 7 could evade the app’s screenshot detection. Apple’s iOS7 launched last summer.

In addition, the FTC said Snapchat’s app stored video snaps which were not encrypted on the recipient’s device. The videos remained accessible to the recipient, the agency said. A user could access a video message, even after it supposedly disappeared, if the user simply connected the phone to a computer and accessed the video in the device’s file directory.

The FTC complaint also alleged that Snapchat failed to secure its “find friends” feature. A security breach in January allowed hackers to collect the usernames and phone numbers of some 4.6 million Snapchat users.

The breach occurred after security experts warned the company at least twice about a vulnerability in its system. Snapchat later issued an update to its app which fixed the issue and allowed users to opt out of the “find friends” feature.

The settlement does not have a financial component, but if Snapchat is found to violate the agreement, the company could end up paying a civil penalty of up to $16,000 (€11,400) for each violation. The Los Angeles start-up reportedly turned down a $3bn buyout offer from Facebook last autumn.

The FTC said Snapchat agreed to settle without admitting or denying any wrongdoing.