• Revision ID 58130 REVISION
  • 2018-03-26 18:30:24
  • by Peter Bale (talk | contribs)
  • Note: Updating on stock price impact
 
   
Title Title
Facebook under investigation, says US consumer protection agency Facebook under investigation, says US consumer protection agency
Summary Summary
Facebook's stock fell sharply after FTC announcement, adding to falls since data scandal emerge Facebook's stock fell sharply after FTC announcement, adding to falls since data scandal emerge
Highlights Highlights
Content Content
<strong>Facebook stock fell sharply on March 26 after the government agency in charge of protecting U.S. consumers <a href="https://www.ftc.gov/news-events/press-releases/2018/03/statement-acting-director-ftcs-bureau-consumer-protection">confirmed it had opened an investigation</a> into the company's privacy practices. The announcement follows reports that millions of Facebook users' profiles were used by a political consulting company to <a href="https://www.wikitribune.com/story/2018/03/22/internet/political-data-firm-cambridge-analytica-suspended-by-facebook-after-expose/56110/">identify and influence voters</a> in the 2016 U.S. presidential election.</strong>  <strong>Facebook stock fell sharply on March 26 after the government agency in charge of protecting U.S. consumers <a href="https://www.ftc.gov/news-events/press-releases/2018/03/statement-acting-director-ftcs-bureau-consumer-protection">said it had opened an investigation</a> into the company's privacy practices. The announcement follows reports that millions of Facebook users' profiles were used by a political consulting company to <a href="https://www.wikitribune.com/story/2018/03/22/internet/political-data-firm-cambridge-analytica-suspended-by-facebook-after-expose/56110/">identify and influence voters</a> in the 2016 U.S. presidential election.</strong>
"The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices," said Tom Pahl in <a href="https://www.ftc.gov/news-events/press-releases/2018/03/statement-acting-director-ftcs-bureau-consumer-protection">a press release. </a>Pahl is the acting director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection. "The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices," said Tom Pahl in <a href="https://www.ftc.gov/news-events/press-releases/2018/03/statement-acting-director-ftcs-bureau-consumer-protection">a press release. </a>Pahl is the acting director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection.
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<a href="https://www.ft.com/content/b774b0d4-3106-11e8-ac48-10c6fdc22f03">According to <em>The Financial Times</em></a> (may be behind paywall), the FTC's inquiry could result in steep fines for Facebook, which signed a consent order in 2011 that required it to be forthcoming with users about how their data was being shared. The company could face fines of up to $40,000 per violation per day – every misuse of user data could count as an individual breach. <a href="https://www.ft.com/content/b774b0d4-3106-11e8-ac48-10c6fdc22f03">According to <em>The Financial Times</em></a> (may be behind paywall), the FTC's inquiry could result in steep fines for Facebook, which signed a consent order in 2011 that required it to be forthcoming with users about how their data was being shared. The company could face fines of up to $40,000 per violation per day – every misuse of user data could count as an individual breach.
"We remain strongly committed to protecting people’s information. We appreciate the opportunity to answer questions the FTC may have." said<i> </i>Rob Sherman, Facebook's deputy chief privacy officer. "We remain strongly committed to protecting people’s information. We appreciate the opportunity to answer questions the FTC may have." said<i> </i>Rob Sherman, Facebook's deputy chief privacy officer.
<span style="font-weight: 400;">[contribute-c2a text="You can edit or expand it" buttons="edit"]</span> <span style="font-weight: 400;">[contribute-c2a text="You can edit or expand it" buttons="edit"]</span>
In New York, the social media giant's stock price (<a href="https://www.google.co.uk/search?q=NASDAQ:FB&amp;stick=H4sIAAAAAAAAAONgecRoyi3w8sc9YSmdSWtOXmNU4-IKzsgvd80rySypFJLgYoOy-KR4uLj0c_UNiqosM0pyeAC6ZzDPOgAAAA&amp;sa=X&amp;ved=0ahUKEwiknKXKporaAhVOC-wKHUlrD78QsRUIsQEwFQ&amp;biw=1200&amp;bih=695">NASDAQ:FB</a>) opened at $160.82 per share on Monday and fell to $149.67 per share at 11:20 a.m. EDT before rallying to $156.72 by 12:30 p.m. Facebook shares fell last week after <a href="https://www.theguardian.com/news/2018/mar/17/cambridge-analytica-facebook-influence-us-election"><em>The Observer</em></a> and <a href="https://www.nytimes.com/2018/03/17/us/politics/cambridge-analytica-trump-campaign.html"><em>The New York Times</em></a> first revealed Cambridge Analytica had used 50 million Facebook profiles to build software to target and influence voters in the latest U.S. presidential election.  In New York, the social media giant's stock price (<a href="https://www.google.co.uk/search?q=NASDAQ:FB&amp;stick=H4sIAAAAAAAAAONgecRoyi3w8sc9YSmdSWtOXmNU4-IKzsgvd80rySypFJLgYoOy-KR4uLj0c_UNiqosM0pyeAC6ZzDPOgAAAA&amp;sa=X&amp;ved=0ahUKEwiknKXKporaAhVOC-wKHUlrD78QsRUIsQEwFQ&amp;biw=1200&amp;bih=695">NASDAQ:FB</a>) opened at $160.82 per share on Monday and fell to $149.67 per share at 11:20 a.m. EDT before rallying to $156.72 by 12:30 p.m. Facebook shares have now fallen nearly 16 percent since the  <a href="https://www.theguardian.com/news/2018/mar/17/cambridge-analytica-facebook-influence-us-election"><em>The Observer</em></a> and <a href="https://www.nytimes.com/2018/03/17/us/politics/cambridge-analytica-trump-campaign.html"><em>The New York Times</em></a> first revealed Cambridge Analytica had used 50 million Facebook profiles to build software to target and influence voters in the latest U.S. presidential election.
Categories Categories
Business, Culture, Current Affairs, Elections, Internet, Law, Markets, Media, North America, Politics, Technology, United States, Internet Business, Culture, Current Affairs, Elections, Internet, Law, Markets, Media, North America, Politics, Technology, United States, Internet
Article type Article type
emerging emerging
Tags Tags
Facebook, ftc, Mark Zuckerberg, Tom Pahl Facebook, ftc, Mark Zuckerberg, Tom Pahl
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