The U.S. Federal Trade Commission made their settlement with Facebook official this week, while also introducing legislation that could potentially change the way the social media giant operates. Looking Fine The FTC initiated an investigation into Facebook in the wake of the 2016 Cambridge Analytica scandal, in which the personal data of tens of millions of Facebook users ended up in the hands of a data firm that worked on President Trump’s 2016 campaign, violating a previous agreement Facebook made to better protect user privacy. In response, Facebook was fined $5 billion, which some analysts felt amounted to a slap on the wrist. But the FTC has also announced further moves that might assuage concerns about how Facebook handles user data. Stay Indie As part of the settlement, the FTC will create an independent privacy committee of directors on the company’s board. The members of the privacy committee will be independent, which is to say not Facebook employees or anyone who has a close relationship with the company or founder and CEO Mark Zuckerberg. Facebook will also have to create an Independent Nominating Committee, so Zuckerberg can’t just put whoever he wants on the board. Private Parts This is the first major check on Zuckerberg’s previous unilateral authority over Facebook, as he is the majority shareholder in addition to the CEO. It is unclear at the moment how this move will shake out, and if the board will have any true power to protect users privacy is they disagree with one of Zuckerberg’s plans, as they do not ultimately have veto power over his decisions. -Michael Tedder Photo: Charles Platiau / REUTERS Read More...
The U.S. Federal Trade Commission made their settlement with Facebook official this week, while also introducing legislation that could potentially change the way the social media giant operates. Looking Fine The FTC initiated an investigation into Facebook in the wake of the 2016 Cambridge Analytica scandal, in which the personal data of tens of millions of Facebook users ended up in the hands of a data firm that worked on President Trump’s 2016 campaign, violating a previous agreement Facebook made to better protect user privacy. In response, Facebook was fined $5 billion, which some analysts felt amounted to a slap on the wrist. But the FTC has also announced further moves that might assuage concerns about how Facebook handles user data. Stay Indie As part of the settlement, the FTC will create an independent privacy committee of directors on the company’s board. The members of the privacy committee will be independent, which is to say not Facebook employees or anyone who has a close relationship with the company or founder and CEO Mark Zuckerberg. Facebook will also have to create an Independent Nominating Committee, so Zuckerberg can’t just put whoever he wants on the board. Private Parts This is the first major check on Zuckerberg’s previous unilateral authority over Facebook, as he is the majority shareholder in addition to the CEO. It is unclear at the moment how this move will shake out, and if the board will have any true power to protect users privacy is they disagree with one of Zuckerberg’s plans, as they do not ultimately have veto power over his decisions. -Michael Tedder Photo: Charles Platiau / REUTERS
The U.S. Federal Trade Commission made their settlement with Facebook official this week, while also introducing legislation that could potentially change the way the social media giant operates. Looking Fine The FTC initiated an investigation into Facebook in the wake of the 2016 Cambridge Analytica scandal, in which the personal data of tens of millions of Facebook users ended up in the hands of a data firm that worked on President Trump’s 2016 campaign, violating a previous agreement Facebook made to better protect user privacy. In response, Facebook was fined $5 billion, which some analysts felt amounted to a slap on the wrist. But the FTC has also announced further moves that might assuage concerns about how Facebook handles user data. Stay Indie As part of the settlement, the FTC will create an independent privacy committee of directors on the company’s board. The members of the privacy committee will be independent, which is to say not Facebook employees or anyone who has a close relationship with the company or founder and CEO Mark Zuckerberg. Facebook will also have to create an Independent Nominating Committee, so Zuckerberg can’t just put whoever he wants on the board. Private Parts This is the first major check on Zuckerberg’s previous unilateral authority over Facebook, as he is the majority shareholder in addition to the CEO. It is unclear at the moment how this move will shake out, and if the board will have any true power to protect users privacy is they disagree with one of Zuckerberg’s plans, as they do not ultimately have veto power over his decisions. -Michael Tedder Photo: Charles Platiau / REUTERS
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