![]() ![]() Zuckerberg to make privacy decisions unilaterally by also vesting responsibility and accountability for those decisions within business units, DCOs (digital compliance officers), and the privacy committee." "The provisions of this Order extinguish the ability of Mr. Zuckerberg’s power – something no government agency, anywhere in the world, has thus far accomplished," the statement says. The commission approved the settlement with a 3-2 vote, with the dissenting commissioners wanting tougher action taken against Zuckerberg.īut the order achieves more than the FTC could have achieved by going to court, says chairman Joe Simons and the commissioners Noah Joshua Phillips and Christine Wilson, who approved the settlement in their lengthy statement. government for any violation.Īs part of the settlement, the FTC's order also curbs Zuckerberg's oversight in privacy and security matters, with the requirement Facebook create a new privacy committee with independent board members who cannot be removed without a two-thirds shareholder vote. Zuckerberg and designated compliance officers each must submit individual quarterly compliance reports to the FTC.īig tech: Facebook, Google, Amazon, Twitter likely facing review from Justice DepartmentĮquifax-FTC settlement: What does Equifax's $700M settlement over its data breach mean for you?Īdditionally, a third-party assessor will monitor Facebook's privacy-related decisions going forward. The $5-billion FTC fine is nearly 20 times greater than the largest privacy or data security penalty that has ever been assessed worldwide and is one of the largest imposed by the U.S. The allegation, which Facebook while agreeing to the final $100 million judgment neither admits nor denies, is that in 20, Cambridge Analytica paid an academic researcher to "collect and transfer data from Facebook to create personality scores for approximately 30 million Americans" and that Facebook discovered this misuse in 2015 but failed to correctly disclose it for more than two years. The separate SEC complaint also dates back to Facebook's response to Cambridge Analytica. At the time, Facebook said it knew the firm had violated its policies by obtaining and secretly passing on the data, which users had agreed to share with a personality prediction app. That move came after The New York Times and U.K.'s The Observer said Cambridge Analytica had access to 50 million profiles and used them to target ads during the 2016 presidential election campaign. Facebook suspended the data analysis and political consulting firm in March 2018 for improper access to user data. Zuckerberg has appeared in congressional hearings after the Cambridge Analytica scandal surfaced. "As alleged in our complaint, Facebook presented the risk of misuse of users data as hypothetical when they knew user data had in fact been misused."įacebook's privacy practices have long been in the government crosshairs and under the scrutiny of consumer watchdog groups, not all of which are satisfied with the terms of Wednesday's agreement. "Public companies must accurately describe the material risks to their business," Stephanie Avakian, co-director of the SEC's Enforcement Division said in a statement. The company separately agreed to pay $100 million to settle data misuse charges brought by the Securities and Exchange Commission. Goodbye to Apple's iPhone 6: So now what smartphone should I buy as a budget option? Facebook must also maintain a data security program, which includes protections of information such as users' phone numbers.įacebook-FTC deal: Settlement means a $5B fine for social network, but not much on face for users It must also adopt a corporate system of checks and balances to remain compliant, according to the FTC order. Under the settlement, which concludes a year-long investigation prompted by the 2018 Cambridge Analytica scandal, the social networking giant must expand its privacy protections across Facebook itself, as well as on Instagram and WhatsApp. "We've agreed to pay a historic fine, but even more important, we're going to make some major structural changes to how we build products and run this company, Zuckerberg posted on Facebook. Watch Video: Facebook pays $5 billion FTC fineįacebook must pay a record-breaking $5 billion fine as part of a settlement with the Federal Trade Commission, by far the largest penalty ever imposed on a company for violating consumers' privacy rights.įacebook also agreed to adopt new protections for the data users share on the social network and to measures that limit the power of CEO Mark Zuckerberg. ![]()
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