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Facebook will pay $ 5 billion due to the user data breach

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Facebook will pay $ 5 billion due to the user data breach
July 25
09:00 2019

To settle a conflict with the FTC (the Federal Trade Commission), Facebook will pay a $ 5 billion fine. The Commission has accused the company of violating the privacy of users. The FTC has reported on the claim. We just have to wait for the permission of the court. The Commission considers such a large amount of payments to be a record.

In addition, Facebook will also pay $ 100 million in favor of the SEC. The Commission has found that the company did not fully provide information about possible leaks of personal data. The regulator has got the information that within the company such cases had the status of “hypothetical”. However, Facebook knew that Cambridge Analytica committed such violations.

It should be noted that the company does not recognize its guilt regarding any charge.

The FTC laid claims after they knew that the personal data of the social network users had been transferred to Cambridge Analytica. They could be used during Brexit and election campaigns in the States.

The regulator and Facebook have agreed that the accused will have to fulfill several commitments, including: complicating third-party access to user data; the need to fully inform users about the use of facial recognition technology; ban on the use of telephone numbers for advertising; obligation to encrypt user passwords. The social network will no longer be able to get passwords from the mail of users who register or subscribe to other platforms.

Additionally, the regulator made the company report incidents threatening the data of 500 or more people. The reports must be submitted within a month.

Facebook will pay $ 100 million under charges from the SEC. The claim is that the users were not notified of the risks associated with their data. The company neither recognizes the charges, nor denies them.

The commission noted that over two years, Facebook has been convincing everyone that the risk of using data for personal gain was minimal. However, they knew that a third-party company really used user data for its own purposes.

The investigation began more than a year ago after revealing the information that Cambridge Analytica had got at its disposal the data of 80 million social network users.

On Wednesday, Facebook securities lost 1.1%.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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