According to a Federal Trade Commission complaint lodged against online storage service Dropbox, users were told they had more security than they actually did.

Wired reports the complaint, filed by a security researchers, says Dropbox told its 25 million users its encryption prevented everyone, including employees, from being able to view their files. The researcher says he’s proven that Dropbox employees actually can view the files. The complaint says Dropbox “has and continues to make deceptive statements to consumers regarding the extent to which it protects and encrypts their data” and asks the FTC to investigate what it says are deceptive trade practices.

A Dropbox spokesperson vigorously disputes the complaint:

“We believe this complaint is without merit, and raises old issues that were addressed in our blog post on April 21, 2011. Millions of people depend on our service every day and we work hard to keep their data safe, secure, and private.”

Dropbox Lied to Users About Data Security, Complaint to FTC Alleges [Wired via Slashdot]

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