Zoom to settle US privacy lawsuit for $85 mn

Use of video platforms including Zoom, Slack, Microsoft, and Google increased significantly due to the coronavirus pandemic. (File/AFP)
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Updated 02 August 2021
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Zoom to settle US privacy lawsuit for $85 mn

  • Zoom agrees to settle a US privacy lawsuit for $85 million whereby Zoom was charged with breaching privacy of users
  • Zoom will also improve its security practices despite denying wrongdoing

SAN FRANCISCO: Zoom, the videoconferencing firm, has agreed to settle a class-action US privacy lawsuit for $85 million, it said Sunday.
The suit charged that Zoom’s sharing of users’ personal data with Facebook, Google and LinkedIn was a breach of privacy for millions.
While Zoom denied wrongdoing, it did agree to improve its security practices.
The settlement needs to be approved by US District Judge Lucy Koh in San Jose, California.
A Zoom spokesman told AFP: “The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.
“We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront.”
The settlement will set up a “non-reversionary cash fund of $85 million to pay valid claims, notice and administration costs, Service Payments to Class Representatives, and any attorneys’ fees and costs awarded by the Court,” according to the preliminary settlement.
All class members are eligible for payment, it said.
Those who paid for an account can receive 15 percent of the money they paid to Zoom for their core subscription during that time or $25, whichever is greater; while those who did not pay for a subscription can make a claim for $15.
As the coronavirus pandemic closed offices due to health risks and companies shifted to working online, use of video and collaboration platforms hosted by companies including Zoom, Slack, Microsoft, and Google rocketed.
But Zoom’s rapid growth came with pressure to deal with security and privacy as the platform faced scrutiny from rising usage.


Malaysia, Indonesia become first to block Musk’s Grok over AI deepfakes

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Malaysia, Indonesia become first to block Musk’s Grok over AI deepfakes

  • Authorities in both countries acted over the weekend, citing concerns about non-consensual and sexual deepfakes
  • Regulators say existing controls cannot prevent fake pornographic content, especially involving women and minors
KUALA LUMPUR: Malaysia and Indonesia have become the first countries to block Grok, the artificial intelligence chatbot developed by Elon Musk’s xAI, after authorities said it was being misused to generate sexually explicit and non-consensual images.
The moves reflect growing global concern over generative AI tools that can produce realistic images, sound and text, while existing safeguards fail to prevent their abuse. The Grok chatbot, which is accessed through Musk’s social media platform X, has been criticized for generating manipulated images, including depictions of women in bikinis or sexually explicit poses, as well as images involving children.
Regulators in the two Southeast Asian nations said existing controls were not preventing the creation and spread of fake pornographic content, particularly involving women and minors. Indonesia’s government temporarily blocked access to Grok on Saturday, followed by Malaysia on Sunday.
“The government sees non-consensual sexual deepfakes as a serious violation of human rights, dignity and the safety of citizens in the digital space,” Indonesia’s Communication and Digital Affairs Minister Meutya Hafid said in a statement Saturday.
The ministry said the measure was intended to protect women, children and the broader community from fake pornographic content generated using AI.
Initial findings showed that Grok lacks effective safeguards to stop users from creating and distributing pornographic content based on real photos of Indonesian residents, Alexander Sabar, director general of digital space supervision, said in a separate statement. He said such practices risk violating privacy and image rights when photos are manipulated or shared without consent, causing psychological, social and reputational harm.
In Kuala Lumpur, the Malaysian Communications and Multimedia Commission ordered a temporary restriction on Grok on Sunday after what it said was “repeated misuse” of the tool to generate obscene, sexually explicit and non-consensual manipulated images, including content involving women and minors.
The regulator said notices issued this month to X Corp. and xAI demanding stronger safeguards drew responses that relied mainly on user reporting mechanisms.
“The restriction is imposed as a preventive and proportionate measure while legal and regulatory processes are ongoing,” it said, adding that access will remain blocked until effective safeguards are put in place.
Launched in 2023, Grok is free to use on X. Users can ask it questions on the social media platform and tag posts they’ve directly created or replies to posts from other users. Last summer the company added an image generator feature, Grok Imagine, that included a so-called “spicy mode” that can generate adult content.
The Southeast Asian restrictions come amid mounting scrutiny of Grok elsewhere, including in the European Union, Britain, India and France. Grok last week limited image generation and editing to paying users following a global backlash over sexualized deepfakes of people, but critics say it did not fully address the problem.