In marketing the service, Snapchat has said that its messages "disappear forever." But in its complaint, the commission said the messages, often called snaps, can be saved in several ways. The commission said that users can save a message by using a third-party app, for example, or employ simple workarounds that allow users to take a screenshot of messages without detection.
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The complaint also said Snapchat transmitted users' location information and collected sensitive data like address book contacts, despite its saying that it did not collect such information. The commission said the policies allowed security researchers to compile a database of 4.6 million user names and phone numbers during a recent security breach.
"If a company markets privacy and security as key selling points in pitching its service to consumers, it is critical that it keep those promises," Edith Ramirez, the chairwoman for the Federal Trade Commission, said in a statement. "Any company that makes misrepresentations to consumers about its privacy and security practices risks F.T.C. action."
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Under the terms of the settlement, Snapchat will be prohibited from misrepresenting how it maintains the privacy and confidentially of user information. The company will also be required to start a wide-ranging privacy program that will be independently monitored for 20 years. Fines could ensue if the company does not comply with the agreement.
Snapchat warns users about potential data collection in its privacy statement. The company says: "There may be ways to access messages while still in temporary storage on recipients' devices or, forensically, even after they are deleted. You should not use Snapchat to send messages if you want to be certain that the recipient cannot keep a copy."
The mobile messaging service Snapchat settled with the Federal Trade Commission over charges that the service inaccurately claimed that, once sent, messages disappeared.