FTC Says Snapchat Deceived Organizers, Stored Photos

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NEW YORK (AP) - Snapchat has agreed to settle with the Federal Trade Commission over charges that it deceived customers about the disappearing nature of messages sent through its service and collected users' contacts without telling them or asking permission.

Snapchat is a popular mobile messaging app that lets people send photos, videos and messages that disappear in a few seconds. But the FTC says Snapchat misled users about its data collection methods and failed to tell users that others could save their messages without their knowledge.

The settlement doesn't have a financial component, but if Snapchat is found to violate the agreement, the company could for forced to pay a civil penalty of up to $16,000 for each violation.

Snapchat reportedly turned down a $3 billion buyout offer from Facebook last fall.