On-line file sharing firm Dropbox can pay $1.6 million (roughly Rs. 6.7 crores) in civil penalties and $450,000 (roughly Rs. three crores) in restitution as a part of a settlement with prosecutors in California over its subscription renewal insurance policies.

District attorneys in 4 counties sued, alleging the agency didn’t correctly notify prospects utilizing its paid Dropbox Professional service about its computerized renewal coverage in violation of state regulation.

Dropbox agreed to the settlement with out admitting legal responsibility. The settlement was introduced Wednesday by officers in Alameda County, the place the civil motion was filed.

As well as, prosecutors alleged the corporate did not sufficiently advise customers that its Dropbox for Enterprise service was supposed just for organisations or companies – not particular person customers utilizing it for private, household or family causes.

Dropbox says it is happy to have resolved the matter.

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