Ftc fines facebook $5b for violating consumer privacy



Facebook Inc. was slapped Wednesday with a historic $5 billion fine by federal regulators for violating the privacy of the millions of people who use its online social media network. In an

agreement with the Federal Trade Commission (FTC), the California-based firm also agreed to several steps relating to user privacy and corporate governance. Regulators said the measures

would restrict how the company collects, utilizes and shares the personal information of users — and send a message to other tech behemoths. "Today is a good day for consumer privacy in

America,” said Christine S. Wilson, a commissioner with the FTC, which approved the settlement on a 3-2 vote. While Facebook founder and CEO Mark Zuckerberg has said he prefers to “move

fast and break things,” the settlement installs “speed bumps” to bolster consumer privacy, she said. “For years, when Facebook asked you ‘Who do you want to see your post?’ and you chose to

share your information only with your ‘friends,’ Facebook provided that data not only to your friends but also to any of the millions of third-party apps that those friends used.” The FTC

was able to install a series of checks and balances intended to bolster privacy and prevent future data-security violations, according to Wilson, who with other federal officials spoke

Wednesday at a news conference in Washington, D.C. FTC Chairman Joe Simons, addressing the settlement, said: “Despite repeated promises to its billions of users worldwide that they could 

control how their personal information is shared, Facebook undermined consumers’ choices." "The magnitude of the $5 billion penalty and sweeping conduct relief are unprecedented in

the history of the FTC,” Simons added. “The relief is designed not only to punish future violations but, more importantly, to change Facebook's entire privacy culture to decrease the

likelihood of continued violations." Facebook CEO Mark Zuckerberg ASSOCIATED PRESS The fine will be paid to the U.S. Treasury after what officials called an exhaustive investigation by

the FTC and the Department of Justice (DOJ). The money is the largest civil penalty ever obtained by the FTC. Some violations just alleged by regulators relate to a 2012 order from the FTC

that tried to stave off Facebook missteps. For example, the earlier order barred the firm from misrepresenting the extent to which it shares personal information — such as names and dates of

birth — with third parties. Facebook “misled millions of Americans” about how it was sharing user data and “committed serious breaches of trust,” said Gustav Eyler, a DOJ official.