Facebook shares slide as US lawsuit adds to mounting pressures on social media giant over data protection
- The social network has admitted that up to 87 million users may have had their data hijacked by Cambridge Analytica
- The New York Times reported that some 150 companies, including Amazon and Netflix, could access detailed information about Facebook users
Facebook’s woes mounted on Wednesday as it faced a lawsuit alleging privacy violations related to data leaked to a consultancy working on Donald Trump’s 2016 campaign, and as a new report suggested it shared more data with partners than it has acknowledged.
Facebook shares already sagging under the weight of the social network’s troubles ended the trading day down 7.25 per cent to US$133.24 and slipped even lower in after-market trades.
The suit filed by the attorney general for the US capital Washington is likely the first by an official US body that could impose consequences on the world’s leading social network for data misuse.
“Facebook failed to protect the privacy of its users and deceived them about who had access to their data and how it was used,” said Attorney General Karl Racine in a statement.
“Facebook put users at risk of manipulation by allowing companies like Cambridge Analytica and other third-party applications to collect personal data without users’ permission. Today’s lawsuit is about making Facebook live up to its promise to protect its users’ privacy.”
The suit filed in Superior Court in Washington seeks an injunction “to ensure Facebook puts in place protocols and safeguards to monitor users’ data and to make it easier for users to control their privacy settings,” and demands “restitution” for consumers.