Under the settlement, Facebook agreed to get consent from users before sharing their data with third parties. It also required Facebook to establish a “comprehensive privacy program,” block access to a user’s account within 30 days of it being deleted and barred it from making any deceptive claims about its privacy practices.The agency could fine Facebook up to $40,000 per violation per day which could add up quickly with millions of users involved. “If I had to bet, they will find violations,” said Jessica Rich, a former head of the FTC’s consumer protection bureau.
The FTC is probing how data from 50 million Facebook users was obtained by Cambridge Analytica, a British political consulting firm that consulted on President Donald Trump’s campaign. The scandal has caused Facebook to delay the unveiling of new home products and redesign its privacy settings. The stock has lost almost $100 billion in market value and is no longer among the top five most valuable companies in the world. The shares closed up 0.53 percent Wednesday at $153.03. Facebook says it didn’t violate the consent decree. “We remain strongly committed to protecting people’s information,” said Rob Sherman, deputy chief privacy officer at Facebook.Now, Facebook Inc. is conducting a broad review of all its data practices and taking a much more conservative stance on some policies, moves that could limit advertisers’ ability to target users on the social network.