On February 27, the Federal Trade Commission (FTC) reached a settlement with Paypal, Inc. relating to the privacy and security practices of Venmo, Paypal’s peer-to-peer payment service. The FTC alleged that Venmo failed to adequately disclose to its users that transfers of funds from their Venmo balances to external bank accounts were subject to review, and such funds could be frozen or removed in cases of suspected fraud. The FTC’s complaint also charges that Venmo misled users about the scope of Venmo’s “bank grade security systems,” as well as the extent to which users could control the visibility of their transactions. Venmo allows individuals to send and receive…