For many data and privacy activists, the $5 billion fine reportedly handed down to Facebook by the Federal Trade Commission is wildly insufficient.
The FTC voted to approve the fine on Friday, according to The Wall Street Journal . The penalty comes as part of a settlement that would also require the company to transform its privacy practices. However, as The New York Times reported , the deal wouldnt restrict Facebooks ability to collect and share its users data with third parties.
If authorized by the Justice Department, it would be the largest fine the FTC has ever levied against a tech company.
The FTC just gave Facebook a Christmas present five months early.
David Cicilline (@davidcicilline) July 12, 2019","type":"rich","meta":{"author":"David Cicilline","author_url":"https://twitter.com/davidcicilline","cache_age":86400,"description":"The FTC just gave Facebook a Christmas present five months early. 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">The FTC just gave Facebook a Christmas present five months early.
David Cicilline (@davidcicilline) July 12, 2019
Freedom from Facebook, an anti-Facebook coalition, described the punishment as a slap on the wrist and called on Congress to investigate the FTC. Republicans on the commission reportedly voted in favor of the settlement against Democrats , 3-2.
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Trumps FTC commissioners have rolled over the monopoly, voting 3-2 for a slap-on-the-wrist settlement with Facebook, the group said in a statement obtained by The Hill . The FTC continues to lay bare their inability to protect American consumers and markets and Congress needs to investigate the FTCs wanton disregard of their duties.
Freedom from Facebook coalition holds no punches in response to reports that the FTC has settled with Facebook for a $5 billion fine:
\"Rumored Facebook Settlement Solidifies FTCs Reputation of Impotence\" pic.twitter.com/3CwakqTxxW
Freedom from Facebook coalition holds no punches in response to reports that the FTC has settled with Facebook for a $5 billion fine:
Emily Birnbaum (@birnbaum_e) July 12, 2019
"Rumored Facebook Settlement Solidifies FTCs Reputation of Impotence" pic.twitter.com/3CwakqTxxW
While $5 billion is a record-breaking penalty, it likely wont affect the company in a lasting way. Facebook set aside $3 billion earlier this year in anticipation of the fine. The company also made a profit of $22 billion last year and brought in $15 billion in revenue last quarter .
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The punishment did have an effect on the stock market. After news of the fine made headlines on Friday, Facebooks stock price surged to its highest point in nearly a year.
the fact that fb shares surged instead of sank on the FTC news is the story https://t.co/SztA1iAyOg pic.twitter.com/qDrzaR8J4Q
rat king (@MikeIsaac) July 12, 2019","type":"rich","meta":{"author":"rat king","author_url":"https://twitter.com/MikeIsaac","cache_age":86400,"description":"the fact that fb shares surged instead of sank on the FTC news is the story https://t.co/SztA1iAyOg pic.twitter.com/qDrzaR8J4Q rat king (@MikeIsaac) July 12, 2019\n\n","options":{"_hide_media":{"label":"Hide photos, videos, and cards","value":false}},"provider_name":"Twitter","thumbnail_height":1024,"thumbnail_url":"https://pbs.twimg.com/media/D_TbCYXWkAcEuSF.jpg:large","thumbnail_width":1024,"title":"rat king on 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">the fact that fb shares surged instead of sank on the FTC news is the story https://t.co/SztA1iAyOg pic.twitter.com/qDrzaR8J4Q
rat king (@MikeIsaac) July 12, 2019
In a statement , Sally Hubbard of the liberal think tank Open Markets Institute said the settlement was woefully insufficient and suggested it encouraged Facebooks bad behavior.
The fine is a mere cost of doing business that makes breaking the law worth it for Facebook. To be effective, remedies must both curb Facebooks widespread data collection and promote competition, Hubbard said. Otherwise, Facebook will continue to fortify its monopoly power by surveilling users both on Facebook and off, and users cant vote with their feet when Facebook violates their privacy.
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Democrats on Capitol Hill also joined the chorus of critics outraged over the settlement.
Sen. Elizabeth Warren of Massachusetts, a 2020 presidential candidate, said the FTC let Facebook off easy for allowing our elections to be improperly influenced , referencing Russias social media influence in the 2016 presidential campaign .
In a tweet, Warren said Facebook should be disbanded by the FTC.
Facebook made $5 billion in profits in just the first three months of last year. The company is too big to oversee, and this drop-in-the-bucket penalty confirms that. The FTC should break Facebook up, plain and simple. Enough is enough.
Elizabeth Warren (@SenWarren) July 12, 2019","type":"rich","meta":{"author":"Elizabeth Warren","author_url":"https://twitter.com/SenWarren","cache_age":86400,"description":"Facebook made $5 billion in profits in just the first three months of last year. The company is too big to oversee, and this drop-in-the-bucket penalty confirms that. The FTC should break Facebook up, plain and simple. Enough is enough. Elizabeth Warren (@SenWarren) July 12, 2019\n\n","options":{"_hide_thread":{"label":"Hide previous Tweet in conversation thread","value":true}},"provider_name":"Twitter","title":"Elizabeth Warren on 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">Facebook made $5 billion in profits in just the first three months of last year. The company is too big to oversee, and this drop-in-the-bucket penalty confirms that. The FTC should break Facebook up, plain and simple. Enough is enough.
Elizabeth Warren (@SenWarren) July 12, 2019
Sen. Mark Warner of Virginia, who is also the vice chairman of the Senate Intelligence Committee, said it was time for Congress to intervene in the FTCs handling of Facebooks violations.
Rep. David Cicilline of Rhode Island suggested the same.
Given Facebooks repeated privacy violations, it is clear that fundamental structural reforms are required. With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, its time for Congress to act.
Mark Warner (@MarkWarner) July 12, 2019","type":"rich","meta":{"author":"Mark Warner","author_url":"https://twitter.com/MarkWarner","cache_age":86400,"description":"Given Facebooks repeated privacy violations, it is clear that fundamental structural reforms are required. With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, its time for Congress to act. 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">Given Facebooks repeated privacy violations, it is clear that fundamental structural reforms are required. With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, its time for Congress to act.
Mark Warner (@MarkWarner) July 12, 2019
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If the FTC wont protect consumers, Congress surely must.
David Cicilline (@davidcicilline) July 12, 2019","type":"rich","meta":{"author":"David Cicilline","author_url":"https://twitter.com/davidcicilline","cache_age":86400,"description":"If the FTC wont protect consumers, Congress surely must. David Cicilline (@davidcicilline) July 12, 2019\n\n","options":{"_hide_thread":{"label":"Hide previous Tweet in conversation thread","value":true}},"provider_name":"Twitter","title":"David Cicilline on 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">If the FTC wont protect consumers, Congress surely must.
David Cicilline (@davidcicilline) July 12, 2019
In a series of tweets, Lindsey Barrett, a teaching fellow at Georgetown Universitys Institute for Public Representation Communications and Technology Clinic, warned that the penalty would encourage Facebook and other tech companies to continue acting recklessly with data without the threat of severe repercussions.
Barrett worked as an extern at Facebooks Privacy and Public Policy group, according to her Georgetown Law biography .
She also warned that other tech companies would violate the law on as grand a scale and in as reckless a way as Facebook did with Cambridge Analytica, the political data firm hired by the Trump presidential campaign in 2016 that was found to have secretly harvested Facebook users data.
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FB will take this case as an example, and so will the other tech companies. violate the law on as grand a scale and in as reckless a way as FB did in cambridge analytica, and youll have to pay a fine that wont break the bank and deal with some minor reporting requirements.
Lindsey Barrett (@LAM_Barrett) July 13, 2019","type":"rich","meta":{"author":"Lindsey Barrett","author_url":"https://twitter.com/LAM_Barrett","cache_age":86400,"description":"FB will take this case as an example, and so will the other tech companies. violate the law on as grand a scale and in as reckless a way as FB did in cambridge analytica, and youll have to pay a fine that wont break the bank and deal with some minor reporting requirements. Lindsey Barrett (@LAM_Barrett) July 13, 2019\n\n","options":{"_hide_thread":{"label":"Hide previous Tweet in conversation thread","value":true}},"provider_name":"Twitter","title":"Lindsey Barrett on 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">FB will take this case as an example, and so will the other tech companies. violate the law on as grand a scale and in as reckless a way as FB did in cambridge analytica, and youll have to pay a fine that wont break the bank and deal with some minor reporting requirements.
Lindsey Barrett (@LAM_Barrett) July 13, 2019
under-enforcement of under-inclusive laws has already hopelessly skewed industry incentives, and an inadequate response to the biggest privacy scandal in the past 2 years says you may have thought things were changing because people seemed extra mad! dont worry, they wont.
Lindsey Barrett (@LAM_Barrett) July 13, 2019","type":"rich","meta":{"author":"Lindsey Barrett","author_url":"https://twitter.com/LAM_Barrett","cache_age":86400,"description":"under-enforcement of under-inclusive laws has already hopelessly skewed industry incentives, and an inadequate response to the biggest privacy scandal in the past 2 years says you may have thought things were changing because people seemed extra mad! dont worry, they wont. 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already hopelessly skewed industry incentives, and an inadequate response to the biggest privacy scandal in the past 2 years says you may have thought things were changing because people seemed extra mad! dont worry, they wont.
Lindsey Barrett (@LAM_Barrett) July 13, 2019
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(reporting requirements and oversight that didnt stop cambridge analytica, or any of the rest of it, from happening to begin with) https://t.co/yg1wieogmu
Lindsey Barrett (@LAM_Barrett) July 13, 2019","type":"rich","meta":{"author":"Lindsey Barrett","author_url":"https://twitter.com/LAM_Barrett","cache_age":86400,"description":"(reporting requirements and oversight that didnt stop cambridge analytica, or any of the rest of it, from happening to begin with) https://t.co/yg1wieogmu Lindsey Barrett (@LAM_Barrett) July 13, 2019\n\n","options":{"_hide_media":{"label":"Hide photos, videos, and cards","value":false},"_hide_thread":{"label":"Hide previous Tweet in conversation thread","value":true}},"provider_name":"Twitter","title":"Lindsey Barrett on 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Privacy","slug":"online-privacy","links":{"relativeLink":"topic/online-privacy","permalink":"https://action.news/topic/online-privacy","mobileWebLink":"https://action.news/topic/online-privacy"},"relegenceSubjectId":6359463,"department":{"name":"Life","slug":"lifestyle"},"section":{"title":"Tech","slug":"technology"},"topic":{"title":"Online Privacy","slug":"online-privacy","overridesSectionLabel":false},"url":"https://action.news/life/topic/online-privacy"},{"name":"Federal Trade Commission","slug":"federal-trade-commission","links":{"relativeLink":"topic/federal-trade-commission","permalink":"https://action.news/topic/federal-trade-commission","mobileWebLink":"https://action.news/topic/federal-trade-commission"},"url":"https://action.news/topic/federal-trade-commission"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">(reporting requirements and oversight that didnt stop cambridge analytica, or any of the rest of it, from happening to begin with) https://t.co/yg1wieogmu
Lindsey Barrett (@LAM_Barrett) July 13, 2019
It is now up to the Justice Department to review and authorize the settlement.
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