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Facebook Fined $5 Billion for Privacy Violations in Cambridge Analytica Data Scandal

July 24: Facebook will have to pay 5 billion US Dollars as fine to the US Federal Trade Commission (FTC) this week for users’ privacy violations in the Cambridge Analytica data scandal involving 87 million users.But they are holding CEO Mark Zuckerberg personally responsible only in a limited fashion.

The US Securities and Exchange Commission (SEC) directed the social networking platform to pay $100 million penalty for making misleading disclosures regarding the risk of misuse of user data.

The FTC has also fined credit bureau Equifax 575-700 million US Dollars for the breach that compromised 147 million users’ personal data in 2017.

The fine is the largest one the US Federal Trade Commission has ever levied on a tech company.

Facebook will also submit to new sweeping restrictions and a modified corporate structure that will hold the company accountable for the decisions it makes about its users’ privacy, the FTC said in a statement.

The settlement drew criticism from a number of senators and Congress members, including Democratic Sen. Mark Warner.

“Given Facebook’s repeated privacy violations, it is clear that fundamental structural reforms are required,” Warner said in a statement on Friday. “With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, it’s time for Congress to act.”

“Despite repeated promises to its billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumers’ choices,” said FTC Chairman Joe Simons.

“The magnitude of the $5 billion penalty and sweeping conduct relief are unprecedented in the history of the FTC. The relief is designed not only to punish future violations but, more importantly, to change Facebook’s entire privacy culture to decrease the likelihood of continued violations,” said FTC.

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