Facebook Fined $5 Billion by FTC

Facebook must create new protections for what data users share and pay a record-breaking $5 billion fine as part of a settlement with the Federal Trade Commission.

Facebook must expand its privacy protections across Facebook, Instagram and WhatsApp and adopt a corporate system of checks and balances to remain complaint, according to the FTC order. Facebook must also maintain a data security program, which includes protections of information such as users’ phone numbers.

The FTC’s order also requires Facebook to create a new privacy committee with independent board members who cannot be removed without a two-thirds shareholder vote. CEO Mark Zuckerberg and designated compliance officers each must submit individual quarterly compliance reports to the FTC.

Additionally, a third-party assessor will monitor Facebook’s privacy-related decisions going forward.

Facebook said in a statement, “In reaching the settlement, Facebook has agreed to pay a $5 billion penalty, which is one of the largest in history. But even more important, Facebook will make some major changes to how it builds products and operates as a company.”

Source: FTC fines Facebook $5 billion for privacy violations, adds oversight | PBS NewsHour

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