Data privacy violations by Facebook attract USD 5 billion fine
26 April, 2020
US regulators on Friday welcomed a “historic” USD 5 billion settlement with Facebook over data privacy as the social network said it had been already implementing the provisions of the deal.
The deal between the leading social networking and the US Federal Trade Commission became official with the approval Thursday of a federal judge.
Combined with the fine, the settlement announced last July requires Facebook to crank up privacy protections; provide detailed quarterly reports on compliance with the offer, and have an unbiased oversight board.
Some privacy activists had challenged the offer claiming it let off Facebook too easy after the Cambridge Analytica scandal that allowed the hijacking of personal data of millions of users prior to the 2016 US presidential election.
FTC chairman Joe Simons said in a statement he was “pleased” with the court approval, pointing out it was the major monetary penalty ever obtained by consumer protection agency.
“As well, the court also highlights that the conduct relief one of them settlement will demand Facebook ‘to consider privacy at every stage of its businesses and provide substantially more transparency and accountability because of its executives’ privacy-related decisions,” Simons said.
The agreement goes beyond measures required by US law and really should “serve as a roadmap for more comprehensive privacy regulation,” Facebook chief privacy officer Michel Protti said in a blog post.
“We hope this contributes to further progress on developing constant legislation in america and elsewhere,” Protti said.
“Ultimately, our goal is to honor people’s privacy and focus on doing what’s right for folks.”
The FTC reopened its investigation of Facebook’s data handling following revelations of the Cambridge Analytica scandal and other missteps by the California giant.
Facebook has created a large number of team specialized in privacy and has thousands of people focusing on privacy-related projects, according to Protti.
“This agreement is a catalyst for changing the culture of our company,” Protti said.
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