It looks like Facebook is in trouble yet again. This time, it’s with the FTC.
In its latest brush with the Federal Trade Commission, Facebook was fined $5 billion as part of a settlement – the largest penalty ever imposed on a company for violating consumers’ privacy rights. Along with the fine, Mark Zuckerberg, Facebook’s founder and CEO, will be personally responsible for certifying the company’s social media compliance within its privacy programs. If Facebook doesn’t meet these social media federal regulations, it could face even more trouble.
This yearlong investigation was sparked by the 2018 Cambridge Analytica scandal. In a statement, Zuckerberg said that the company will make major structural changes and that, “We have a responsibility to protect people’s privacy… now we’re going to set a completely new standard for our industry.” What are these “structural changes”? One can imagine that it will include updating the website terms and conditions as well we Facebook’s privacy policy.
How will this fine affect Facebook as a whole? Honestly, not a lot. A former FTC chief technologist Ashkan Soltani called the settlement a “get-out-of-jail-free card.” In fact, the stock prices on Wall Street actually increased after the settlement was announced. And while some think this is just a slap on the wrist, the FTC’s powers are limited, and this is a record-breaking fine – although it still only amounts to less than 10% of Facebook’s annual earnings.
As the Social Media Attorney, I think it will be interesting to see what privacy changes Facebook decides to implement. Knowing that it will have to comply with new regulations under the watchful eye of the FTC, Facebook might want to hire its own social media lawyer (hint, hint).
Have questions about the social media compliance at your own company? Contact the Social Media Law Firm today! We’re always happy to look at your current policies and make recommendations so you can stay in compliance in the future.
