Facebook To Pay $5-Billion Fine Over Privacy Issue - FTC

Facebook To Pay $5-Billion Fine Over Privacy Issue - FTC
The Federal Trade Commission approved an amount close to $5 billion settlement with Facebook over the company’s 2018 Cambridge Analytica scandal, someone acquainted with the matter told The Wall Street Journal, different news outlets individually rumored the approval.

The fine represents the biggest ever obligatory fine by the Federal Trade Commission against a tech company. Previously, the agency’s largest fine against a tech company came in 2012 when Google agreed to pay a $22.5 million penalty because of its privacy practices. The fine would represent close to 9-11 of Facebook’s 2018 revenue.

The settlement drew criticism from a variety of Senators and Congress members, as well as Democratic Fractional Monetary Unit, Mark Warner.

“Given Facebook’s continual privacy violations, it's clear that fundamental structural reforms are needed,” Warner aforementioned in a statement on Friday. “With the Federal Trade Commission either unable or unwilling to put affordable guardrails to make sure that user privacy and information are protected, it’s time for Congress to act.”

“This fine may be a fraction of Facebook’s annual revenue,” he said during a statement on Friday. “It won’t build them deliberate regarding their responsibility to guard user information.” and also stated the fine is a "slap on the wrist."

Facebook took a one-time charge of $3 billion in anticipation of the Federal Trade Commission fine in April within the company’s first-quarter results.

The Federal Trade Commission approved the settlement by a 3-2 vote on party lines with Republicans in favor and Democrats against, and can now be reviewed in the Department of Justice, the reporter said.

The Federal Trade Commission began inquiring Facebook in March 2018 following reports that political consulting firm Cambridge Analytica had accessed the information of 87 million Facebook users. The agency was concerned that Facebook had profaned the terms of a 2011 agreement, that needed Facebook to provide users terribly clear notifications once their information was being shared with third parties.

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