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7/15/2019
03:00 PM
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FTC Reportedly Ready to Sock Facebook with Record $5 Billion Fine

The fine, for the social media giant's role in the Cambridge Analytica scandal, would be the largest ever against a tech company.

The Federal Trade Commission (FTC) and Facebook have reached a settlement over the 2015 Cambridge Analytica privacy scandal, according to reports in The Wall Street Journal and other news outlets.

The fine, at approximately $5 billion, is the largest against a tech company in the FTC's history, surpassing the $22.5 million levied against Google in 2012. That fine also was for failures in privacy practices.

While the settlement has not been formally announced, legislators are already speaking out on the subject, with those on both sides of the aisle criticizing the amount – approximately 9% of Facebook's 2018 revenue – as insufficient.

The proposed settlement must be reviewed by the Department of Justice before it's finalized. No date has been announced for the conclusion of that review.

Read more here and here.

 

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tdsan
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tdsan,
User Rank: Ninja
7/16/2019 | 12:19:18 PM
This is excessive
I do think that facebook will fight this because this is unprecedented. Per the article, Google was fined 12 million but 5 billion is way over the limit.

What they could do, is to allocate that money to improve their security posture over a number of years. But this is extremely excessive.

T
drewinutah
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50%
drewinutah,
User Rank: Apprentice
7/16/2019 | 2:17:03 PM
FTC fines will herald GDPR Ambulance Chasers!
While this FTC fine of $5 billion "feels" excessive, given the level of scrutiny on both sides of the Pond and because of an increasingly hostile sector of miscreants trying to go where they're not invited, I would expect the GDPR Police to be watching very carefully--especially for a big, fat American-based company, to look to level a big, fat American-sized fine on a GDPR violation--somebody who they know is out in the open and easily pegged as not coloring within the lines (McD? Coke? Pepsico? are you listening?)
chadtc
50%
50%
chadtc,
User Rank: Apprentice
7/17/2019 | 2:16:50 PM
Fine Money
What will the FTC do with five billion dollars? Help establish a GDPR for the U.S.? Although GDPR lacks controls it'd be a good start for the US.
spann182
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50%
spann182,
User Rank: Apprentice
7/17/2019 | 4:09:11 PM
Re: Fine Money
California and Colorado have already been looking into this for the states. What we do not need is individual complainces for each state. This should be just the US version of GDPR for ALL states. 

I work in Security and the last think I want to do is remember which states differer in the verbage. 
UdyRegan
50%
50%
UdyRegan,
User Rank: Apprentice
7/22/2019 | 3:45:07 AM
No such thing as privacy
In view of this hefty fine amount, how can online users now rest assured that they are truly safe online? Every action that we perform online, there will be at least a single entity that will be watching our every move. Though we do not perform anything illegal, we still feel as though our basic privacy is being invaded. However, there is just too much data online that we need to gain access to so I guess privacy is a small price to pay?
CameronRobertson
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50%
CameronRobertson,
User Rank: Moderator
7/22/2019 | 4:57:07 AM
Slap on the wrist.
It seems like the amount is great, but considering the kind of money that Facebook makes, and the amount of people that are already reliant on what it does for them, that 5 billion really isn't going to be making a dent in their earnings at all if you ask me! I reckon that it would barely even be considered painful since they could make the money back easily in the coming year with all the acquisitions and development they're doing!
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