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In re Facebook, Inc.

FTC Docket No. C-4365 (July 24, 2019)

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In re Facebook, Inc.

Federal Trade Commission
FTC Docket No. C-4365 (July 24, 2019)

Facts

In 2012, Facebook, Inc. (defendant) entered a consent order (the 2012 order) with the Federal Trade Commission (FTC) (plaintiff) that barred Facebook from misrepresenting both the extent of Facebook’s data sharing with third-party applications and the extent of consumer control over such sharing. The 2012 order also required Facebook to establish a reasonable privacy-protection program. When the FTC later became concerned that Facebook was not complying with the 2012 order, FTC staff conducted a thorough investigation. After the investigation, the FTC filed suit against Facebook in federal district court, alleging that Facebook was violating the 2012 order by (1) making misrepresentations regarding third-party data sharing, (2) misrepresenting consumer control over sharing and the steps consumers needed to take to control certain sharing, and (3) allowing financial considerations to influence enforcement of its policies and thus failing to maintain a reasonable privacy-protection program. The complaint also alleged that Facebook violated § 5 of the FTC Act by engaging in new deceptive practices regarding consumer phone numbers collected for account-security purposes. Facebook and the FTC engaged in settlement negotiations that resulted in the entry of a stipulated order agreed to by the parties.

Rule of Law

Issue

Holding and Reasoning (Simons, Chairman)

Dissent (Slaughter, Comm’r)

Dissent (Chopra, Comm’r)

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