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- Government Actions:Government Action: BBB reports on known government actions involving business’ marketplace conduct:Verkada Inc.
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On September 4, 2024, Verkada Inc. agreed to a settlement (case:3:24-cv-06153), that was brought by the Department of Justice stemming from a referral from the Federal Trade Commission.
The lawsuit was brought against the company based on allegations that Verkada violated the Controlling the Assault of Non-Solicited Pornography and Marketing Act and the Federal Trade Commission Act.
According to court documents Verkada failed to implement appropriate security practices, such as appropriate access management, data protection controls and adequate encryption of consumer data. This failure allowed hackers to access consumers personal and sensitive information as well as sensitive footage from security cameras.
In addition to the security breech, it is alleged that Verkada was aware that investors and employees posted positive ratings and reviews misleading consumers and failed to provide clear and conspicuous notification to be able to opt out of promotional emails nor did the company provide a valid physical address for this purpose or honor request received within the required 10 business days.
As part of the settlement Verkada is prohibited from misrepresenting its data security, will implement a comprehensive security program, allow for a third-party assessment of its data security practices and will pay a civil penalty of $2.95 million.
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