PayPal recently revealed in a Securities and Exchange Commission filing that its popular payment app Venmo is under investigation by the Federal Trade Commission, Fortune reports. While the reason for the investigation has yet to be announced, a $175,000 settlement between Venmo and the Attorney General of Texas may shed light into the inquiry. Venmo was found to have violated user privacy by using an “autofriend” feature to mine contact lists of users, while its default settings make all payments public. An anonymous source familiar with the case said the company has yet to receive questions from the FTC, indicating the investigation is at an early stage. Of the Texas case, a Venmo representative said, “Consumers entrust us to move and manage their money, and we take that responsibility seriously.”
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