Snapchat's claim to fame was the fact that a user could send pictures over it's service without fear of them being stored and that the images were "ephemeral," "disappearing forever" and "aren't saved." - turns out those claims are not true. Surprised? No, not really.

The FTC outlined it's case within a recent press release as follows: The FTC case also alleged that the company deceived consumers over the amount of personal data it collected and the security measures taken to protect that data from misuse and unauthorized disclosure. In fact, the case alleges, Snapchat’s failure to secure its Find Friends feature resulted in a security breach that enabled attackers to compile a database of 4.6 million Snapchat usernames and phone numbers.



According to the FTC’s complaint, Snapchat made multiple misrepresentations to consumers about its product that stood in stark contrast to how the app actually worked.

“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,” said FTC Chairwoman Edith Ramirez. “Any company that makes misrepresentations to consumers about its privacy and security practices risks FTC action.”

Touting the “ephemeral” nature of “snaps,” the term used to describe photo and video messages sent via the app, Snapchat marketed the app’s central feature as the user’s ability to send snaps that would “disappear forever" after the sender-designated time period expired. Despite Snapchat’s claims, the complaint describes several simple ways that recipients could save snaps indefinitely.

Consumers can, for example, use third-party apps to log into the Snapchat service, according to the complaint. Because the service’s deletion feature only functions in the official Snapchat app, recipients can use these widely available third-party apps to view and save snaps indefinitely. Indeed, such third-party apps have been downloaded millions of times. Despite a security researcher warning the company about this possibility, the complaint alleges, Snapchat continued to misrepresent that the sender controls how long a recipient can view a snap.

In addition, the complaint alleges:

That Snapchat stored video snaps unencrypted on the recipient’s device in a location outside the app’s “sandbox,” meaning that the videos remained accessible to recipients who simply connected their device to a computer and accessed the video messages through the device’s file directory.

That Snapchat deceptively told its users that the sender would be notified if a recipient took a screenshot of a snap. In fact, any recipient with an Apple device that has an operating system pre-dating iOS 7 can use a simple method to evade the app’s screenshot detection, and the app will not notify the sender.

That the company misrepresented its data collection practices. Snapchat transmitted geolocation information from users of its Android app, despite saying in its privacy policy that it did not track or access such information.

The complaint also alleges that Snapchat collected iOS users’ contacts information from their address books without notice or consent. During registration, the app prompted users to, “Enter your mobile number to find your friends on Snapchat!” Snapchat’s privacy policy claimed that the app only collected the user’s email, phone number, and Facebook ID for the purpose of finding friends. Despite these representations, when iOS users entered their phone number to find friends, Snapchat also collected the names and phone numbers of all the contacts in their mobile device address books. Snapchat continued to collect this information without notifying or obtaining users’ consent until Apple modified its operating system to provide such notice with the introduction of iOS 6.

The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

Snapchat posted a statement regarding the matter on it's blog; while we were focused on building [Snapchat], some things didn't get the attention they could have. One of those was being more precise with how we communicated with the Snapchat community." They go on to say, "even before today's consent decree was announced, we had resolved most of those concerns over the past year by improving the wording of our privacy policy, app description, and in-app just-in-time notifications. And we continue to invest heavily in security and countermeasures to prevent abuse."