Dropbox Accused of Lying to Consumers According To FTC Complaint

Dropbox, a service that offers cloud-based file storage accessible via numerous devices, has been accused of deceiving customers. A favorite of start-ups and consultants, the service prominently advertises security and encryption as an advantage over competitors.

The FTC complaint charges Dropbox (.pdf) with telling users that their files were totally encrypted and even Dropbox employees could not see the contents of the file. Ph.D. student Christopher Soghoian published data last month showing that Dropbox could indeed see the contents of files, putting users at risk of government searches, rogue Dropbox employees, and even companies trying to bring mass copyright-infringement suits.

Soghoian, who spent a year working at the FTC, charges that Dropbox “has and continues to make deceptive statements to consumers regarding the extent to which it protects and encrypts therir data,” which amounts to a deceptive trade practice that can be investigated by the FTC.