Facebook Preparing for Up to $5 Billion Fine Due to Data Privacy Issues

first_imgFacebook expects federal regulators to hit the social media company with a massive fine resulting from several recent data privacy scandals.Executives with the company said on Wednesday that the Federal Trade Commission’s investigation could result a fine ranging anywhere from $3 billion to $5 billion.Facebook has set aside $3 billion in legal expenses tied to the investigation, an action which cut into the company’s profit. In the first quarter of this year, the social media site reported $2.4 billion in profit, which is down 51 percent from a year ago.The fine, if levied, would become Facebook’s first financial penalty in the United States since last year’s Cambridge Analytica scandal. Since that time, Facebook has faced additional public and government scrutiny for not being fully transparent regarding where and how it shares its users’ data.Facebook signed a 2011 consent agreement with the FTC, in which it was required to implement a “comprehensive privacy program” and to also get “express consent” from users before sharing their information.Former FTC officials believe the agency will apply the fine due to the public attention Facebook has received from the data privacy issues.last_img

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