The third-party assessor must also report directly to the independent privacy committee each quarter. In addition, the complaint alleges that Facebook improperly policed app developers on its platform. The Commission takes consumer privacy seriously, and will enforce FTC orders to the fullest extent of the law.”, “The Department of Justice is committed to protecting consumer data privacy and ensuring that social media companies like Facebook do not mislead individuals about the use of their personal information,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. It is one of the largest penalties ever assessed by the U.S. government for any violation. 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 Federal Trade Commission announces a settlement with Facebook over the company's privacy policies. Additionally, the order imposes significant new privacy requirements, including the following: The settlement stems from alleged violations of the FTC’s 2012 settlement order with Facebook. Facebook is prohibited from asking for email passwords to other services when consumers sign up for its services. The Federal Trade Commission works to promote competition, and protect and educate consumers. Facebook Board News: Facebook may appoint a privacy executive as part of a settlement with the FTC, also making Mark Zuckerberg a designated compliance officer. The settlement resolves a formal complaint by the FTC alleging that Facebook "used deceptive disclosures and settings" that eroded user privacy, violating a prior agreement Facebook … And its suggestion that Facebook should have done more to share data with third-party developers seemingly runs counter to the FTC’s own privacy enforcement actions — … SAN FRANCISCO — Facebook said on Wednesday that it expected to be fined up to $5 billion by the Federal Trade Commission for privacy violations. The $5 billion penalty against Facebook is the largest ever imposed on any company for violating consumers’ privacy and almost 20 times greater than the largest privacy or data security penalty ever imposed worldwide. It also required Facebook to maintain a reasonable privacy program that safeguards the privacy and confidentiality of user information. The FTC holds the right to appoint or fire the assessor. The order requires Facebook to restructure its approach to privacy from the corporate board-level down. Facebook has now reached an agreement with the FTC regarding privacy concerns. Facebook, Inc. will pay a record-breaking $5 billion penalty, and submit to new restrictions and a modified corporate structure that will hold the company accountable for the decisions it makes about its users’ privacy, to settle Federal Trade Commission charges that the company violated a 2012 FTC order by deceiving users about their ability to control the privacy of their personal information. Statement of Chairman Joe Simons and Commissioners Noah Joshua Phillips and Christine S. Wilson Regarding the Matter of Facebook, Inc. The FTC alleged that Facebook violated its privacy promises to consumers and subsequently violated a 2012 Commission order. Despite this promise, the company separately told developers that they could collect this data until April 2015 if they already had an existing app on the platform. In a statement, the FTC said it … Facebook must exercise greater oversight over third-party apps, including by terminating app developers that fail to certify that they are in compliance with Facebook’s platform policies or fail to justify their need for specific user data; Facebook is prohibited from using telephone numbers obtained to enable a security feature (e.g., two-factor authentication) for advertising; Facebook must provide clear and conspicuous notice of its use of facial recognition technology, and obtain affirmative express user consent prior to any use that materially exceeds its prior disclosures to users; Facebook must establish, implement, and maintain a comprehensive data security program; Facebook must encrypt user passwords and regularly scan to detect whether any passwords are stored in plaintext; and. 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