FTC's Snapchat Attack Lends Weight To New Plaintiff Tactic

By Allison Grande (May 9, 2014, 8:46 PM EDT) -- In its settlement Thursday with the mobile messaging service Snapchat, the Federal Trade Commission sent a strong warning that privacy claims need to be treated the same way as other advertising representations, a message that bolsters an increasingly popular type of claim in consumer data breach class actions.

In a complaint filed along with the parties' consent order, the FTC chided Snapchat for making several representations in advertising and other disclosures to consumers about the functionality and security of its app that the commission alleged stood "in stark contrast" to how the product actually functioned.

The regulator specifically took issue with...

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