Facebook Slapped With $5 Billion Fine By The Federal Trade Commission
Facebook CEO Mark Zuckerberg just got hit with a $5 billion fine by the Federal Trade Commission. That's right, $5 billion. The FTC also imposed some new regulations on the social media giant as well.
Buisinessinsider.com reports Facebook's $5 billion fine was handed down for Facebook's mishandling of user data. This is a record fine for the FTC. Clearly, they mean business and aim to send a very strong message to tech companies about how they handle user data.
The straw that broke the camel's back seemingly according to buisinessinsider.com was the Cambridge user data scandal. The record-setting fine "is a direct response to the Cambridge Analytica scandal, where data from over 50 million Facebook users was obtained without permission by a political data analytics firm."
In addition, there are new regulations being imposed by the FTC as well.
1. "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."
2. "Facebook is prohibited from using telephone numbers obtained to enable a security feature (e.g., two-factor authentication) for advertising."
3. "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."
4. "Facebook must establish, implement, and maintain a comprehensive data security program."
5. "Facebook must encrypt user passwords and regularly scan to detect whether any passwords are stored in plaintext."
6. "Facebook is prohibited from asking for email passwords to other services when consumers sign up for its services."
You can read a more detailed description of the above regulations over at buisinessinsider.com.