In This Article, a Feature That Allows for Speedy Uploads is Shown to Be Technically At Odds With the Terms of Service

From Wired:

The FTC complaint charges Dropbox 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.

This is probably overblown. In a nut, Dropbox promised that private files were inaccessible by other users, or by Dropbox. This is technically untrue: private files must be accessed by Dropbox in cases involving a subpoena, and the service’s deduplication backend is technically allowing access to private files. This is potentially a far-reaching claim.

The man who filed the FTC complaint is Chris Soghoian, who previously created a Northwest Airlines boarding pass generator, and recently published a series of emails exposing a smear campaign conducted on behalf of Facebook.