November 5, 2022
Facebook appropriates billions to pay fines

Facebook has Stashed Billions of Dollars to Pay Heft Privacy Fines

Following earlier reports of a “multi-billion dollar fine” and subsequent negotiations with the FTC, Facebook has set aside big money to pay-up…

Although Facebook has faced one scandal after another, it continues to enjoy huge revenues, along with substantial growth.

Facebook Appropriates Billions for Potential Fines

But, those blunders come with a massive price tag. So, in its latest earnings report, the social network disclosed it’s put aside billions for financial penalties.

For the first quarter of this year, Facebook recorded 2.38 billion monthly users and 1.56 billion daily active users. The social corporation also earned $15.08 billion in revenue in Q1 2019, representing an increase of 26 percent year-over-year.

In its 2019 Q1 earnings report, Facebook states it has held back an astounding $3 billion in fines, if necessary.

This shouldn’t come as a surprise.

In April alone, security firms have discovered dozens of Facebook Groups buying and selling stolen credit card information and likewise found hundreds of millions of user records stored on publicly accessible servers.

Moreover, the social network uploaded 1.5 million user emails for improved ad targeting with no way for people to opt out. Back in March, the site had to drop ad targeting options over civil rights concerns.

Also in March, Facebook suffered another scandal over its 2FA practices, which made users’ phone numbers searchable.

If that weren’t enough, the company faced a complaint by the FTC of not properly protecting users’ sensitive health data in closed Groups. What’s more, six state attorney generals launched an investigation into Facebook’s data handling practices.

Ashley Lipman

Ashley Lipman is a super-connector with Outreachmama who helps businesses find their audience online through outreach, partnerships, and networking.

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