The Federal Trade Commission confirmed Wednesday that it has agreed to a settlement of Facebook for violating consumer privacy in Cambridge The Analytica scandal, where the social network paid a $ 5 billion penalty and agrees to new restrictions.
Reports on the settlement appeared originally on July 12, and the FTC voted 3-2 to join the settlement. In a release published on Wednesday, the FTC confirmed that the settlement was agreed, valued at $ 5 billion, and that Facebook has agreed to changes in its functioning and a modified corporate structure that will hold the company responsible for the decisions it takes users' privacy. "
The boat will decide the FTC charges Facebook violated an 2012 FTC order by fooling users on their ability to control the privacy of their personal information.
The $ 5 billion fine is the largest imposed by the FTC for a consumer privacy violation, and is also the largest punishment for privacy or data security breaches in the world. In comparison, CFPB and states against the Equifax privacy management action saw the exchange of a $ 275 million fine, and the US against Uber resulted in a $ 148 million fine.
Along with financial punishment, Facebook is also ordered to restructure its corporate governance approach to corporate governance, create more compliance channels and introduce new mechanisms to ensure managers are responsible for privacy decisions.
"Despite repeated promises to billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumer choice," said FTC chairman Joe Simons. "The magnitude of the $ 5 billion penalty and sweeping behavior relief is outstanding in the history of the FTC. The relief is designed not only to punish future violations, but more importantly, to change Facebook's privacy culture to reduce the likelihood of continued breaches." 19659005] Simons continued "The commission takes consumer privacy seriously, and will enforce the FTC order to the full extent of the law."
At the same time as the announcement of the Facebook boat, the FTC also revealed that it has sued Cambridge Analytica as well as filed Settlement for public comment with the company's former CEO Alexander Nix and developing Kogan. Both have agreed to get administrative orders that limit how they operate in the future, and require that they delete and destroy the collected personal information.
The FTC investigation started in March last year after the disclosure Analytica and Cambridge University researcher Aleksandr Kogan used a quiz app on the social network to collect data about users and their affiliate friends, with the latter performed without consent. Analytica used the data to create voter profiles for around 71 million Americans and a small amount of foreign FaceBook users.
Clients from Analytica included the presidential campaigns in 2016 by Donald Trump and Ted Cruz, and Mexico's institutional revolutionary party during Mexico's parliamentary elections in 2018. The violation of rights and political use drew control from governments in both Britain and the United States.