Verkada has agreed to pay a settlement but disputes the allegations made by the FTC regarding security breaches and email spamming. The FTC stated that Verkada’s security failures allowed hackers to access footage from over 150,000 internet-connected cameras in 2021. The company failed to use appropriate information security practices, leading to the breach. Verkada was fined $2.95 million for inundating prospective customers with commercial emails, the largest penalty of its kind. Despite agreeing to the settlement, Verkada rejects the FTC’s allegations.
The Department of Justice filed a complaint after Verkada’s security failures allowed a hacker to access cameras in sensitive areas. The breach included cameras in psychiatric hospitals, women’s health clinics, elementary schools, and prison cells. Verkada was unaware of the breach until the hacker reported it to the media.
The FTC also accused Verkada of misleading consumers by not disclosing that certain online ratings and reviews were written by employees and a venture capitalist. The company was found to have violated the CAN-SPAM Act by sending over 30 million commercial emails to customers without providing a clear unsubscribe option.
As part of the settlement, Verkada must implement a comprehensive information security program and undergo third-party audits. The company is also prohibited from misrepresenting its data security practices and violating the CAN-SPAM Act. Verkada maintains that it does not agree with the allegations but has accepted the terms of the settlement to focus on its mission of protecting people and places in a privacy-sensitive way. Please rewrite this sentence so it is more concise and clearer.
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