To conclude its multi-year probe into Facebook's multiple privacy regulation violations, the Federal Trade Commission (FTC) has revealed that it will be imposed a record-breaking fine on the social media giant amounting to $5 billion. The amount is meant to be a settlement for Facebook for its various privacy breaches, including its involvement in the Cambridge Analytica election scandal.
The agreement between Facebook and the FTC was filed today, Thursday, following the FTC's findings on Facebook's activities. The FTC apparently found enough evidence to support its allegations of Facebook's violation of privacy laws and failing to protect the data of its users from third party companies.
The FTC also alleged in its findings that Facebook was guilty of using the phone numbers provided by its users for security purposes in targeted ads. The social media giant was also accused of lying to its users regarding the use of its facial recognition software.
The record $5 billion fine is meant to settle all of the charges against the social media firm. The fine is one of the biggest ever levied by the FTC, easily overshadowing the $22 million fine it had imposed on Google in 2012. Privacy groups have stated that the fine, despite its apparent size, is likely just a drop in the bucker for the social media giant. Facebook recently reported $15 billion in revenue for the first quarter of 2019, which means that the fine will hardly be considered by the company as a drastic loss.
Apart from the hefty fine, Facebook was also forced to agree to a number of new restriction on its business practices. The company has been ordered to conduct a privacy review for any new product it introduces to the public. The review will need to be assessed by the company CEO, Mark Zuckerberg, and third-party checkers. Additionally, Facebook is now required to obtain purpose and use certifications from app developers that want to use its user data.
According to the FTC, Facebook has been given strict compliance guidelines relating to its various activities. These were apparently meant to give the company corporate and individual accountability. The FTC has also placed rigorous compliance monitoring systems to immediately catch deviations and to act on them quickly if necessary.
To remedy its recent breach of privacy involving its facial recognition system, Facebook will be required to ask users affirmative consent each time its systems create new facial recognition models. Facebook has also agreed to pay an additional $100 million to the Securities and Exchange Commission for its failure to disclose relevant details to its investors.
