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Facebook slapped with USD 5-billion fine over privacy breaches

Facebook, the world's most powerful social media platform, was slapped with USD 5 billion fine over privacy violations, including the massive Cambride Analytica scandal. 
Facebook slapped with USD 5-billion fine over privacy breaches
Photo from Variety

The second-largest fine imposed by the FTC

The Federal Trade Commission (FTC) finally concluded its investigation for privacy breaches, imposing the multi-billion dollar penalty against the social media giant. 

The agreement, which was filed on Thursday, Philippine time, stated that Facebook violated the law by failing to secure its users' data from third parties, serving ads through the use of phone numbers required in its security, and lying about its facial recognition software being turned off. 

To settle this matter, Facebook has to cough up USD 5 billion, said to be the second-largest fine imposed by the FTC. 

The US-based firm also needs to agree to a series of new restrictions on its operations, including conducting a privacy review of every new product or service that it develops, and these reviews must be submitted to the CEO and a third-party assessor every quarter. 

Following the controversial Cambridge Analytica, Facebook was also demanded to obtain purpose and use certifications from apps and third-party developers that want to use its user data. 

The Order imposes a privacy regime that includes a new corporate governance structure, with corporate and individual accountability and more rigorous compliance monitoring, FTC said. 

Reacting to the news, Facebook said in its blog post that users may expect heightened privacy protection in its system. 

The agreement will require a fundamental shift in the way we approach our work and it will place additional responsibility on people building our products at every level of the company. It will mark a sharper turn toward privacy, on a different scale than anything we’ve done in the past, Facebook said. 

Aside from the FTC fine, Facebook was also hit by a USD 100 million fine from the Securities and Exchange Commission due to its failure to inform its investors about the breach incidents.

Source: The Verge
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