The US Federal Trade Commission (FTC) has announced that Facebook will have to pay a $5 billion fine over the Cambridge Analytica scandal.
According to the statement released by the FTC, Facebook will have to pay the fine for violating a 2012 order regarding the privacy of user data, and the social media network has implemented new management structures and policies to ensure the protection of users. They have also agreed to the new rules.
Facebook will now form a new independent privacy committee, a group of company directors who will meet every three months to review reports from an independent privacy analyst who will monitor Facebook’s actions. The FTC has also called for enforcement of rules to curb Facebook CEO Mark Zuckerberg’s will.
Facebook, including WhatsApp and Instagram, will also be bound by these new rules and will be required to report privacy violations to the administration, for which Facebook must notify the FTC within 30 days.
The FTC began investigating Facebook in March 2018 after the Cambridge Analytica scandal revealed the misuse of millions of users’ data. Facebook has faced criticism for using users’ phone numbers for advertising purposes, and will no longer be able to do so under the new settlement.
Facebook agreed to pay the fine earlier this month and has now entered into a formal settlement with the FTC, after which the US department gave final approval to the fine.
Facebook scandals that have come to light in recent years include the disclosure of personal information of 30 million users and the uploading of email contact details of 1.5 million users.
This is the first time that a technology company has been sentenced to such a large fine by the US regulatory body.
#social #networking #website #suffered #setback
2024-09-21 06:18:19
