The agreement comes after there was a massive privacy breach of around 4.6 million Snapchat users details, which included usernames and phone numbers.
The FTC had the following to say about the issue.
Snapchat’s failure to secure its Find Friends feature resulted in a security breach that enabled attackers to compile a database of 4.6 million Snapchat usernames and phone numbers.”
If a company markets privacy and security as key selling points in pitching its service to consumers, it is critical that it keep those promises. Any company that makes misrepresentations to consumers about its privacy and security practices risks FTC action.
After the data breach, Snapchat came under quite a bit of criticism, as the issue were apparently reported to them before the breach occurred.
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