Facebook was fined $5bn, the largest penalty ever for privacy violation by Federal Trade Commission.
Facebook violated the privacy law by failing to protect data from third parties, serving ads through the use of phone numbers provided for security, and lying to users that its facial recognition software was turned off by default.
According to the FTC order, The social networking giant must expand its privacy protections across Facebook itself, as well as on Instagram and WhatsApp. It must also adopt a corporate system of checks and balances to remain compliant and also maintain a data security program, which includes protections of information such as users’ phone numbers.
The FTC’s order also curbs Zuckerberg’s oversight in privacy and security matters, it requires Facebook create a new privacy committee with independent board members who cannot be removed without a two-thirds shareholder vote. Zuckerberg and designated compliance officers each must submit individual quarterly compliance reports to the FTC.
Facebook also agreed to adopt new protections for the data users share on the social network and to measures that limit the power of CEO Mark Zuckerberg