Facebook Hit With $5 Billion Fine from the FTC

The Cambridge Analytica scandal is surprisingly still going on. The FTC has now fined Facebook $5 billion because of the data mining scandal.

In January, there were rumours that Facebook could face a “record setting” fine for privacy violations. This fine is in response to the Cambridge Analytica scandal where both that company and Facebook were under fire for data mining practices.

The scandal itself saw Cambridge Analytica declare bankruptcy after their offices got raided.

Now, it seems that the rumours of a record setting fine against Facebook is holding true. According to CNET, Facebook is facing a $5 billion fine for various privacy violations:

Facebook is notching a record breaker. The Federal Trade Commission on Wednesday announced that Facebook agreed to pay a $5 billion fine over privacy violations and its failure to inform tens of millions of users about a data leak that happened years ago. The fine is the largest the US regulator has levied against a tech company.

The settlement will require Facebook CEO Mark Zuckerberg, as well as other designated compliance officers, to certify that the company is taking steps to protect user privacy. A false statement could potentially expose them to penalties. The order also removes some of Zuckerberg’s control over privacy decisions by creating an independent privacy committee of the company’s board of directors.

“Despite repeated promises to its billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumers’ choices,” said FTC Chairman Joe Simons in a release. “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.”

Many point out that this fine does not mean the end of Facebooks problems. For all we know, other countries could still fine the company for privacy violations. One thing is for sure, two years into the Cambridge Analytica scandal and this story still isn’t going away – whether or not Facebook likes this or not.

Drew Wilson on Twitter: @icecube85 and Facebook.

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