The FTC could demand to keep an eye on Facebook for 20 years
A DEAL BETWEEN Facebook and the US Federal Trade Commission (FTC) could see the social network put under the watchdog’s supervision for the next 20 years.
An agreement between the two is expected to be announced soon, once the watchdog concludes its long-running probe into the company’s shonky data privacy practices. The FTC has accused Facebook of violating a 2011 agreement to keep all user data private. Under that agreement, the company pledged to get users’ explicit permission before sharing their data with third parties.
However, the recent scandals involving political consultancy Cambridge Analytica and a number of other organisations indicate that the company egregiously broke that agreement.
The FTC is now conducting an investigation to determine whether Facebook’s practices violated the agreement.
As part of the soon-to-be-announced settlement, Facebook is also expecting to be whacked with a hefty fine; the firm recently set aside $3bn of its profits to foot the incoming bill.
At the time, Facebook admitted that the FTC could demand as much as $5bn – a record-high penalty for a tech company in the US – once it concludes its long-running probe.
“We estimate that the range of loss in this matter is $3bn to $5bn,” the company said. “The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.”
According to Reuters, the deal between Facebook and the FTC may also include clauses for oversight of the activities of Facebook’s board of directors relating to the implementation of privacy policies and practices. The agreement is also expected to require Facebook to be more vigilant and aggressive in monitoring third-party app developers.
Facebook could announce its deal with FTC within the next month, according to Reuters. µ
Source : Inquirer