FTC Imposes Record $5 Billion Penalty on Facebook
The FTC imposes a record $5 billion penalty on Facebook with sweeping new privacy restrictions.
The FTC imposes a record-breaking $5 billion penalty on Facebook along with sweeping new privacy restrictions. This historic fine stands as the largest penalty ever imposed on any company for violating consumers' privacy.
The settlement requires Facebook to completely restructure its approach to privacy from the corporate board-level down. It establishes a new independent privacy committee on the board of directors and mandates that CEO Mark Zuckerberg personally certifies the company's compliance with these strict new rules.
This decisive action stems directly from Facebook's violations of a 2012 FTC order related to the Cambridge Analytica scandal and other significant privacy failures. The Department of Justice files the official complaint on behalf of the FTC to enforce this massive regulatory penalty.