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Facebook Settles With FTC, Admits Privacy Violations

Animats writes "Facebook has agreed to settle Federal Trade Commission charges that it deceived consumers by telling them they could keep their information on Facebook private, and then repeatedly allowing it to be shared and made public. The settlement is soft on Facebook; there are no fines or criminal penalties. According to the FTC, in December 2009, Facebook 'changed its website so certain information that users may have designated as private – such as their Friends List – was made public. Facebook didn't warn users that this change was coming, or get their approval in advance.' Among the other complaints (PDF), 'Facebook represented that third-party apps that users' installed would have access only to user information that they needed to operate. In fact, the apps could access nearly all of users' personal data – data the apps didn't need.'" The settlement demands that Facebook avoid any new deceptive privacy claims, and also that users must give explicit permission for changes to be made to their privacy preferences. Facebook will be audited every two years for the next two decades to make sure they're holding up their end of the settlement. In a lengthy statement on Facebook's blog, Mark Zuckerberg acknowledged that they'd made mistakes.

42 of 138 comments (clear)

  1. FTC is doing a good job by CmdrPony · · Score: 2, Interesting

    Not only did they slap Facebook for privacy violations, but also Google a few months ago. They IMO are the two largest privacy violators on the internet.

    Now, maybe someone at Facebook will read this and notice: Please fix the chat so that if I have set it offline, it will not quickly popup me as online and then back offline when I later visit Facebook. It seems like a stupid bug. It also leads to stupid private messages (especially from my mother -_-) when I just want to check updates.

    Other than that, Facebook has done a pretty good job. It's still the most useful social network on the internet, and I doubt Google+ will be ever able to compete with it.

    1. Re:FTC is doing a good job by ackthpt · · Score: 2

      So sue them. Start a class action suit. There's plenty of material there to work with, thanks to the FTC.

      --

      A feeling of having made the same mistake before: Deja Foobar
    2. Re:FTC is doing a good job by Culture20 · · Score: 2

      Not only did they slap Facebook [on the back] for privacy violations, but also Google

      They're getting another two years to put things in order before the first audit, then they get to do a half-year-screw-everyone, half-year-clean-up-the-mess between year-long audits.

    3. Re:FTC is doing a good job by icebike · · Score: 4, Interesting

      Not only did they slap Facebook [on the back] for privacy violations, but also Google

      They're getting another two years to put things in order before the first audit, then they get to do a half-year-screw-everyone, half-year-clean-up-the-mess between year-long audits.

      Further: The settlement is soft on Facebook; there are no fines or criminal penalties.

      So in addition to getting away Scott free, they have two years to clean up their act, by which time the opt-ins will be in place but so disguised and muted that users will fall into the same trap.

      Facebook users don't care about privacy, the whole point of Facebook is and always has been a meat market method of self promotion. Facebook knows this and will simply make it so limiting to do anything except opt-in that most users will simply check the Opt-In-to-Everything box.

      --
      Sig Battery depleted. Reverting to safe mode.
    4. Re:FTC is doing a good job by hairyfeet · · Score: 2

      Class actions are even worse! The lawyers get huge paydays while the victims get a coupon towards their next purchase with the company that screwed them just adding insult to injury!

      As for TFA let me guess...another slap on the wrist? In the past decade any power the regulatory agencies had has been taken away or bought out by bribery. I doubt very seriously you'll ever see another big court case like the MSFT one in the 90s, Citizens United saw to that. These slaps on the wrist are just the cost of doing business now and I frankly wouldn't be surprised if the supermegacorps have a "STFU fund" set up just for dealing with those "pesky" rules and regs.

      --
      ACs don't waste your time replying, your posts are never seen by me.
  2. Mixed Feelings. by forkfail · · Score: 5, Insightful

    On the one hand, good on the FTC. Especially for the followup reviews.

    On the other hand, this once again proves that it's far easier to just do something contractually and ethically questionable yet massively profitable and wiggle out of the consequences later (especially if you've the money for a squadron of lawyers) than to do things above the board from the get go.

    --
    Check your premises.
    1. Re:Mixed Feelings. by CmdrPony · · Score: 2, Insightful

      What should FTC have done? Fine them for some hundred thousands? Facebook has the cash. Shut down the company? Facebook is based in Ireland, and it would mean lots of shit to many people (like it or not, Facebook has become part of life for almost every human on earth)

    2. Re:Mixed Feelings. by dr.banes · · Score: 4, Insightful

      On the one hand, good on the FTC. Especially for the followup reviews.

      On the other hand, this once again proves that it's far easier to just do something contractually and ethically questionable yet massively profitable and wiggle out of the consequences later (especially if you've the money for a squadron of lawyers) than to do things above the board from the get go.

      Yeah, better to ask for forgiveness than ask for permission.

    3. Re:Mixed Feelings. by oh_my_080980980 · · Score: 5, Insightful

      Too big to fail eh? What you do is fine them. Hit them in the pocket book. That's what you are suppose to do.

      FYI Facebook is not based in Ireland. That's for accounting practices.

    4. Re:Mixed Feelings. by CmdrPony · · Score: 2

      Obviously, but it's also their legal base. As it legally stands now, they outsource their programming and datacenter jobs to US. How the world changes... :)

    5. Re:Mixed Feelings. by msauve · · Score: 4, Informative

      "Facebook is based in Ireland"

      Huh? No, they're not, although they could certainly have a subsidiary incorporated there.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    6. Re:Mixed Feelings. by morgauxo · · Score: 2

      Facebook has become part of life for almost every human on earth

      How do we change that?

    7. Re:Mixed Feelings. by CmdrPony · · Score: 2, Interesting

      Why should we change it? To what? I'm happy to see how easy it is keep contact with people and get to know new interesting places and guys and girls. This is especially true if you travel a lot, like I do. I noticed it's incredibly easy to use the connections you have on Facebook to find new stuff, be it other people, places, or even restaurants. I honestly don't think we had it any better before.

      For all its faults, Facebook has done incredible job at connecting just normal people all over the world. No matter if they related to you, your friends you have met somewhere, friends you haven't seen in a while or totally new people. It really has brought people closer to each other, and introduced people to other ones that share the same interests. You just have to know how to use it.

    8. Re:Mixed Feelings. by Chewbacon · · Score: 4, Insightful

      Agreed. The damage is done and irreversible and Facebook is getting off pretty much free for it. All of those companies that had accessed that data is sitting on top of it now and can do whatever they would like with it.

      --
      Chewbacon
      The Bible is like Wikipedia: written by a bunch of people and verifiable by questionable sources.
    9. Re:Mixed Feelings. by Stan92057 · · Score: 2

      So, What are we to do just let them do whatever the hell they want to do?? Yes they should face fines from any profit they have. No they shouldn't be put out of business ...this time. But what should we do the next time? its already the what the 5Th time already they have been caught lieing.

      --
      Jack of all trades,master of none
    10. Re:Mixed Feelings. by TubeSteak · · Score: 2

      What should FTC have done? Fine them for some hundred thousands?

      http://en.wikipedia.org/wiki/Disgorgement_(law)
      Admitting guilt is rare these days, but it's not an alternative to actually preventing companies from profiting off their bad acts.

      --
      [Fuck Beta]
      o0t!
    11. Re:Mixed Feelings. by E+IS+mC(Square) · · Score: 3, Informative

      Almost every human on planet = roughly 6 billion people (out of 6.7 billion estimated)

      so 0.8 billion is almost same as 6 billion. Things you learn on slashdot these days.

    12. Re:Mixed Feelings. by hedwards · · Score: 4, Insightful

      The difference is that Google sells views and Facebook sells information. Both are potentially worrying, but of the two I'd be a lot more concerned about Facebook.

    13. Re:Mixed Feelings. by cffrost · · Score: 4, Funny

      [...] Facebook has become part of life for almost every human on earth[.]

      For those of us who take a longer view, Facebook has become a part of our HOSTS file(s).

      --
      Thank you, Edward Snowden.

      "Arguments from authority are worthless." —Carl Sagan
  3. Mistakes? by jazman_777 · · Score: 5, Insightful
    Mark Zuckerberg acknowledged that they'd made mistakes.

    Because they don't believe they did wrong. They really believe they made mistakes, the first of which was "get caught."

    --
    Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
    1. Re:Mistakes? by dkleinsc · · Score: 3, Interesting

      Well, neither does the FTC really. If they did, they might have introduced some actual penalties rather than a slap on the wrist.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    2. Re:Mistakes? by rickb928 · · Score: 2

      Audited. Now THAT'S gonna fix 'em!

      Every two years. Quaking in their slippers.

      Right. Nearly meaningless. The next step, in three years (it will take a full year of investigation), will be to fine them some insignificant amount and make them promise, again, to not do that.

      Truth is, the FTC has little incentive to actually punish bad behavior or compel corporations to stop their bad behavior:

      - If they were truly effective, not only would corporations stop behaving badly, but they would therefore have very little to do at the FTC; not many new complaints, having seen what a $2B fine against Facebook, for instance, as if it would ever happen, really meant.

      - If they were trying to be effective, the Congressional delegation from California (where Facebook actually lives) and Delaware (where they are very likely incorporated) would crush the FTC's budget like a roach. And move enforcement to some agency they could more properly 'manage'.

      - And if that all weren't enough, Facebook would let its IPO benefactors know, many of whom will be Congressmen and Senators, that this is not good for the nation, users, government, the economy, and those very same representatives who profited well indeed from that IPO. And not necessarily in that order.

      Another ineffective response from the FTC, and predictably so. Perhaps the EU can do better? Non? Plus Ãa change, eh?

      --
      deleting the extra space after periods so i can stay relevant, yeah.
  4. Re:Facebook is evil and parasitic by forkfail · · Score: 5, Interesting

    Probably never.

    Why? Because they fill a niche, and do it well. And the thing about social networks is this: whoever is the biggest is probably going to stay the biggest at this point. It's no good joining a social network that none of your friends use. And to some folks, Facebook is the internet.

    Not saying this is a good thing, or right - just my observations on the way that things are.

    --
    Check your premises.
  5. Wouldn't trust Zuckerberg to watch my dog by dtjohnson · · Score: 5, Insightful

    I wouldn't trust Zuckerberg to watch my dog and yet 100s of millions of people entrust his company with their most personal information. Odd, that.

    1. Re:Wouldn't trust Zuckerberg to watch my dog by JustAnotherIdiot · · Score: 2

      I would love to trust Zuckerberg to watch my dog. She'd probably bite his face off, and the would would forever be better off.

      --
      What do I know, I'm just an idiot, right?
    2. Re:Wouldn't trust Zuckerberg to watch my dog by LordLucless · · Score: 2

      company with their most personal information

      Yeah, because I have my bank account details and medical information on Facebook.

      My "most personal information" that Facebook has is "I washed the dog yesterday" and "the potato plants are doing well." What are they going to do - try and sell me pooch shampoo? Oh no - the horror!

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  6. The Facebook by poormanjoe · · Score: 2

    10 billion isn't cool. You know whats cool? Invading privacy.

    --
    I want to be retired when I grow up.
  7. An interesting penalty... by homsar · · Score: 4, Insightful

    Facebook broke the law. As punishment, Facebook has to promise not to do it again, and be monitored to make sure it keeps its promise. I guess Facebook is only seven years old, and since companies have the same rights as people (apparently), I guess it makes sense they are given punishment befitting a person of that age.

    1. Re:An interesting penalty... by CmdrPony · · Score: 3, Informative

      Facebook didn't break the law, and FTC isn't a law enforcement agency. They just broke practices FTC didn't like, and as FTC still does have some saying (just because of their standing), Facebook agreed to such settlement. Settlement.

  8. Every two YEARS?? by webdog314 · · Score: 3, Insightful

    In Facebook's case those audits should probably be about once every two months... There was a new violation (location tracking) on the iOS mobile app just this week.

  9. Re:Facebook is evil and parasitic by dkleinsc · · Score: 5, Insightful

    This is pointing out one of the many problems with social network BS: The word "friend" has been hijacked and turned into "somebody you kinda sorta know from somewhere" rather than "somebody you choose to spend significant amounts of time with but isn't a family member".

    Nobody has 300 real friends, I promise you that much.

    --
    I am officially gone from /. Long live http://www.soylentnews.com/
  10. What kind of time scale does the FTC use? by Zadaz · · Score: 5, Insightful

    Every two years for two decades!?!?!??!

    I bet all my private information that Facebook won't be around in 20 years. And 2 years is enough time to cause a ridiculous amount of damage when you have a billion users.

    I bet they're quaking in their repentant boots.

    1. Re:What kind of time scale does the FTC use? by LordLucless · · Score: 2

      They probably are - those terms are much worse for them than something like "every month for six months". The latter would require them to clean-up shop in the short term, get past the audits, and the deal's done. Those FTC audits are long-term liabilities that are going to be hanging over Facebook for the next twenty years. They're going to have a lot bigger impact than a bit of short-term oversight.

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  11. Re:Facebook is evil and parasitic by WhoBeDaPlaya · · Score: 2

    I mean, we're such losers that even Taco abandoned us :(

  12. Re:Facebook is evil and parasitic by epine · · Score: 3, Informative

    Chums, chumettes, and granfallooners.

  13. Comedy gold by dtml-try+MyNick · · Score: 2

    From Mark Zuckerberg's post:

    As a matter of fact, privacy is so deeply embedded in all of the development we do that .....
    ....These privacy principles are written very deeply into our code.

    You've gotta admit, the guy does have a good sense of humor ;P

    --
    Life starts at the end of your comfort zone.
  14. Re:Facebook is stupid and bannal by IGnatius+T+Foobar · · Score: 5, Insightful

    It's even simpler than that. There will soon be a generation of kids who wouldn't be caught dead on the same social network as their parents. Eventually, we will get to a point where Facebook will be for old people, just like email is considered by the under-25 set now.

    Now you kids get off my lawn!

    --
    Tired of FB/Google censorship? Visit UNCENSORED!
  15. The Truly Corrupt by koan · · Score: 2

    "Mark Zuckerberg acknowledged that they'd made mistakes."

    Translation: "We got caught"

    "The settlement is soft on Facebook; there are no fines or criminal penalties."

    Translation: "We paid the FTC boss off or our backers are too powerful to screw with"

    "Facebook will be audited every two years for the next two decades to make sure they're holding up their end of the settlement."

    Translation: "We expect to get bought off every 2 years if you want us to cover for you"

    --
    "If any question why we died, Tell them because our fathers lied."
  16. Yeah! Take that! by Sir+Realist · · Score: 5, Funny

    Now do better next time, or we'll politely ask you to do better next time again!

  17. Re:Facebook is evil and parasitic by Culture20 · · Score: 2

    As CmdrPony noted above, the internet has stabilized quite a bit. ... MySpace might have made themselves more than a stepping stone to social networking stabilization, but they did not. Facebook, on the other hand, has done so.

    Facebook did it by initially providing a site with stable appearance instead of personalized backgounds and music loading on everyone's pages. Then they started changing things, and rapidly. I'm seeing my non-technical friend drop facebook lately because they're fed up with the changes (not the privacy changes that I disliked, but instead UI changes that confuse them).

  18. Here's a better idea.... by BulletMagnet · · Score: 2

    Have Oracle buy Facebook, and call OraBook ... or Oracle, since Larry's still in charge. Pair those two up, and then we can have a company that EVERYONE hates.

  19. Re:Facebook is evil and parasitic by Culture20 · · Score: 2

    Nobody has 300 real friends, I promise you that much.

    Nobody has 300 *close* friends. I have way more than 300 real friends: old friends, work friends, church friends, family friends, ex girlfriends, close friends. That's not counting acquaintances or friends of those friends. To me, someone I was friends with in high school does stop being my friend just because our lives diverged. At reunions, we happily get back into old patterns while discussing the latest happenings in our lives. If one of them came back into regular contact (and some have), I'd be very happy and welcome their presence.

    I know the joke about slashdotters, but we really don't live in basements.