September 22, 2021
Facebook FTC $5 billion fine

FTC Issues $5 Billion Fine against Facebook and Demands Quarterly Third-Party Privacy Checks

The Federal Trade Commission has hit Facebook with a $5 billion fine and now requires the company submit to quarterly, third-party privacy assessments…

Today, the United States Federal Trade Commission formally announced a $5 billion settlement with Facebook. It comes after a lengthy, years-long investigation which includes Cambridge Analytica and other privacy scandals.

FTC Issues $5 Billion Fine against Facebook and Demands Quarterly Third-Party Privacy Checks

The FTC Facebook fine of $5 billion is the second-largest ever issued by the agency. Aside from the financial penalty, Facebook must submit to quarterly, third-party privacy assessment. Three supporting commissioners wrote in a statement:

“The Order imposes a privacy regime that includes a new corporate governance structure, with corporate and individual accountability and more rigorous compliance monitoring. This approach dramatically increases the likelihood that Facebook will be compliant with the Order; if there are any deviations, they likely will be detected and remedied quickly.”

The FTC also questions Facebook’s facial recognition software. Under the new rules, the social corporation must obtain official consent to create any new facial recognition tools. (Though the company isn’t required to destroy older models.)