Jul 25, 2019 11:23:00

Facebook Settles Settlement Agreement with Federal Trade Commission for $ 400 Billion, Record-High for Privacy

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The Federal Trade Commission (FTC), which oversees and monitors companies under the antitrust law , imposes a $ 5 billion (approximately ¥ 400 billion) penalty on Facebook, which Facebook We announced that we agreed to this on July 24, 2019. This $ 5 billion is the highest ever ever imposed by the FTC for personal information handling issues.

FTC Imposes $ 5 Billion Penalty and Sweeping New Privacy Restrictions on Facebook | Federal Trade Commission
https://www.ftc.gov/news-events/press-releases/20019/07/ftc-imposes-5-billion-penalty-sweeping-new-privacy-restrictions

FTC Agreement Brings Rigorous New Standards for Protecting Your Privacy | Facebook Newsroom
https://newsroom.fb.com/news/2019/07/ftc-agreement/

FTC hits Facebook with $ 5 billion fine and new privacy checks-The Verge
https://www.theverge.com/2019/7/24/20707013/ftc-facebook-settlement-data-cambridge-analytica-penalty-privacy-punishment-5-billion

The FTC is expected to impose a $ 5 billion penalty on Facebook's misleading users for personal information and face recognition, the Washington Post said on July 23, 2019. It was reported.

The Federal Trade Commission has determined that Facebook was fooling users in the handling of phone numbers and face recognition features-GIGAZINE

The FTC imposed $ 5 billion in fines, despite the fact that Facebook was required to review the privacy and inspect it by a third party in a settlement agreement with the FTC in November 2012. It states that there was no improvement in handling at all. The incident in which Facebook was misused 50 million user data by consulting firm Cambridge Analytica, which was discovered in 2018, triggered the questioning of Facebook's personal information handling ability again, and the FTC started immediately after the incident was discovered. He was investigating Facebook.

Facebook Zuckerberg finds that 50 million users have been abused-finds mistake-GIGAZINE

In addition to the fines, the FTC has mandated Facebook to submit a review of the personal information of all new products and services it develops to the CEO and third party evaluators each quarter.

'Since Facebook has promised billions of users all over the world to 'control the way we share personal information,'' said Joe Simmons, chairman of the FTC. Having narrowed the options, the $ 5 billion fine and remedies for widespread conduct are unprecedented in the FTC's history, not only punishing future privacy violations, but more importantly, Facebook's The aim is to change the overall privacy culture and to reduce the possibility of ongoing violations.The FTC emphasizes consumer privacy and enforces FTC's orders to the fullest extent permitted by the law. '.

Mark Zuckerberg, CEO of Facebook, spoke of the settlement at a company-wide rally on the morning of July 24, 2019. 'This reconciliation agreement will fundamentally change the way we work on our jobs, and people who make products at all levels of the company will be more responsible than ever.' It says. You can see the story of CEO Zuckerberg in the following movie:



However, the settlement agreement includes a comprehensive disclaimer for Facebook's executives, and does not state any practical restrictions on Facebook's business model. As a result, some FTC members have stated: 'The fundamental issue that caused Facebook to violate the 2012 settlement agreement is unresolved. The settlement imposes a meaningful change on the company's structure and financial incentives. 'No,' I criticize against the reconciliation with Facebook.

In addition, Facebook has said it has agreed to pay a $ 100 million fine to settle with the Securities and Exchange Commission under investigation in Cambridge Analytica.

Aside from the Facebook fines, the FTC announced a settlement between Cambridge Analytica's CEO Alexander Knicks and Alexander Kogan, who went through personal information, as of July 24, 2019. Cambridge Analytica and Mr. Kogan have agreed to an administrative order 'to limit future business operations and delete and discard collected personal information'. In addition, Cambridge Analytica seems to have filed for bankruptcy.

FTC Sues Cambridge Analytica, Settles with Former CEO and App Developer | Federal Trade Commission
https://www.ftc.gov/news-events/press-releases/20019/07/ftc-sues-cambridge-analytica-settles-former-ceo-app-developer