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FTCs Proposed Settlement With Facebook
Treads Path of Landmark Google Buzz Case
The Federal Trade Commission has unveiled a proposed settlement of allegations that Facebook, Inc., repeatedly failed to keep promises to consumers about the
companys treatment of their personal information.
Under the proposed settlement announced Nov. 29,
Facebook would be subject to civil penalties up to $16,000
per violation for any future misrepresentations about the
privacy or security of consumers personal information.
In addition, Facebook would commit to a comprehensive privacy by design program for the development
and management of new and existing products and services and to 20 years of biennial independent, third-party
audits of its privacy practices.
Also, the proposed settlement would require
Facebook to obtain users affirmative express consent
before enacting changes that override their privacy preferences and to ensure within 30 days of a user deleting
his or her account that no one could access the users
Facebook data.
The FTCs complaint lists eight allegations of
Facebook promises regarding user privacy or security that
it failed to meet, including assertions that third-party apps
only had access to user information needed for the apps
operation, that it certified the security of third-party apps,
and that it would not share information users personal
information with advertisers.
The FTC also said that Facebook claimed that when
users deactivated or deleted their accounts, their photos
and videos would be inaccessible. But Facebook allowed
access to the content, even after users had deactivated or
deleted their accounts. The FTC added, Facebook
claimed that it complied with the U.S.-EU Safe Harbor
Framework that governs data transfer between the U.S.
and the European Union. It didnt.
Comments on the proposed settlement will be accepted until Dec. 30.
FTC Chairman Jon Leibowitz told reporters that he
believes the settlement is fair and balanced and that it
will allow Facebook to move forward. He also said that
the proposed settlement is very comparable to the
commissions settlement
with Google, Inc., earlier
this year over charges that
Google used deceptive
tactics and violated its stated privacy policies when
launching its Google Buzz social network function last
year.
Privacy
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