US slaps US$5 billion fine on Facebook for privacy violations, imposes rules to limit ‘unfettered control’ by CEO Mark Zuckerberg
- Despite promises to users that it could control how personal information is shared, ‘Facebook undermined consumers’ choices,’ said the Federal Trade Commission
The Federal Trade Commission said the penalty was the largest levied against any company for violating consumers’ privacy and one of the largest penalties ever assessed by the US government for any violation.
“Despite repeated promises to its billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumers’ choices,” FTC Chairman Joe Simons said.
“The magnitude of the US$5 billion penalty and sweeping conduct relief are unprecedented in the history of the FTC. The relief is designed not only to punish future violations but, more importantly, to change Facebook’s entire privacy culture to decrease the likelihood of continued violations.”
The agreement establishes an independent privacy committee within Facebook’s board of directors, “removing unfettered control by Facebook’s CEO Mark Zuckerberg over decisions affecting user privacy”, the FTC statement said.
Two commissioners of the five-member FTC dissented, saying the penalty was insufficient.