The United States Security and Exchange Commission has announced it’s reached a settlement of $100 million with Facebook over Cambridge Analytica…
Yesterday, the US Federal Trade Commission announced a $5 billion fine against social media giant Facebook. Now, that federal agency has been joined with the Security and Exchange Commission, which has reached a $100 million settlement with the world’s largest social network.
SEC Announces $100 Million Settlement with Facebook
The SEC states the settlement is over charges of making “misleading disclosures” about users’ risk of data abuse. The federal agency maintains Facebook knew about the data breach in 2015. However, the company continued to downplay the risks. Also, Facebook did not have “specific policies or procedures” in place.
Just like the FTC fine, Facebook did not have to admit guilt but the company also does not deny the allegations. The settlement is part of a deal which enjoins the social corporation from violating relevant sections of the Securities Act and the Security Exchange Act.