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Facebook's privacy practices are under investigation, FTC confirms Facebook's privacy practices are under investigation, FTC confirms
(35 minutes later)
The US Federal Trade Commission is investigating Facebook’s privacy practices following a week of scandals including whether the company engaged in “unfair acts” which cause “substantial injury” to consumers. Facebook’s privacy practices are under investigation by the US Federal Trade Commission following a week of scandals and public outrage over the company’s failure to protect the personal information of tens of millions of users.
“The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook,” said Tom Pahl, acting director of the FTC’s bureau of consumer protection in a statement on Monday noting that the investigation would include whether the company engaged in “unfair acts that cause substantial injury to consumers”.
Facebook’s stock, which already took a big hit last week, plunged as a result.Facebook’s stock, which already took a big hit last week, plunged as a result.
“We remain strongly committed to protecting people’s information,” Facebook’s deputy chief privacy officer, Rob Sherman, said in a statement. “We appreciate the opportunity to answer questions the FTC may have.”
Facebook’s privacy practices have come under fire after revelations in the Observer that Cambridge Analytica got data on Facebook users, including information on friends of people who had downloaded a psychological quiz app, even though those friends had not given explicit consent to sharing.Facebook’s privacy practices have come under fire after revelations in the Observer that Cambridge Analytica got data on Facebook users, including information on friends of people who had downloaded a psychological quiz app, even though those friends had not given explicit consent to sharing.
The fact that the data obtained by Cambridge Analytica was harvested in 2014 has raised questions about whether Facebook violated a 2011 consent decree with the FTC.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, said he believed Facebook was in violation of the 2011 settlement in letting Cambridge Analytica harvest data on friends of Facebook users.
“This is what Facebook was doing 10 years ago that people objected to, what the FTC should have stopped in 2011,” Rotenberg said. “It makes zero sense that when a person downloads their apps, they have the ability to transfer the data of their friends.”
Although Zuckerberg talked about changes in 2014 that would have prevented this, Rotenberg said it should have been banned already under the 2011 consent decree. He said the FTC had dropped the ball in failing to enforce that.
But Chris Hoofnagle, faculty director of the Berkeley Center for Law and Technology, said that legal language in the consent decree would make it difficult for the government to show that Facebook had violated the agreement, because it allows Facebook to give the information of a user’s friends to third-party developers.
“The consent decree doesn’t give the FTC a lot of traction, but what’s going to happen is what happened in the first FTC case,” Hoofnagle said, referring to the investigation that resulted in the 2011 agreement. “The FTC went in investigating A, then discovered B, C, D, E, F and G. The same thing is going to happen here. They’re going to go in under the consent decree logic, and then they’re going to find other wrongdoing.”
Facebook is also facing questions over reports that it collected years of contact names, telephone numbers, call lengths and information about text messages from Android users.Facebook is also facing questions over reports that it collected years of contact names, telephone numbers, call lengths and information about text messages from Android users.
Facebook said on Sunday that this information was uploaded to secure servers and came only from people who gave explicit consent to allow it.Facebook said on Sunday that this information was uploaded to secure servers and came only from people who gave explicit consent to allow it.
Officials said the data was not sold or shared with users’ friends or outside apps. They said the data was used “to improve people’s experience across Facebook” by helping to connect with others.Officials said the data was not sold or shared with users’ friends or outside apps. They said the data was used “to improve people’s experience across Facebook” by helping to connect with others.
But the company did not spell out exactly what it used the data for or why it needed it.But the company did not spell out exactly what it used the data for or why it needed it.
The social media giant said the company remains “strongly committed” to protecting people’s information and that it welcomes the opportunity to answer the FTC’s questions.
News outlets reported on the FTC investigation last week, but the FTC did not confirm it until Monday.
Facebook reached a settlement with the FTC in 2011 offering privacy assurances.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, said he believed Facebook was in violation of the 2011 settlement in letting Cambridge Analytica harvest data on friends of Facebook users.
“This is what Facebook was doing 10 years ago that people objected to, what the FTC should have stopped in 2011,” Rotenberg said. “It makes zero sense that when a person downloads their apps, they have the ability to transfer the data of their friends.”
Although Zuckerberg talked about changes in 2014 that would have prevented this, Rotenberg said it should have been banned already under the 2011 consent decree. He said the FTC had dropped the ball in failing to enforce that.
Meanwhile, the chief law enforcement officers for 37 US states and territories are demanding to know when Facebook learned of the Cambridge Anaytica breach.Meanwhile, the chief law enforcement officers for 37 US states and territories are demanding to know when Facebook learned of the Cambridge Anaytica breach.
The officers say in a letter to Zuckerberg that users’ trust in the social media platform is “broken”.The officers say in a letter to Zuckerberg that users’ trust in the social media platform is “broken”.
The attorneys general are asking how Facebook monitored what these developers did with all the data they collected and whether Facebook had safeguards to prevent misuse.The attorneys general are asking how Facebook monitored what these developers did with all the data they collected and whether Facebook had safeguards to prevent misuse.
They also asked Zuckerberg for an update on how Facebook will allow users to more easily control the privacy of their accounts.They also asked Zuckerberg for an update on how Facebook will allow users to more easily control the privacy of their accounts.
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