The Federal Trade Commission (FTC) has proposed changes to Facebook’s 2020 privacy order after accusing the social media giant, now known as Meta, of violating the order by failing to protect users’ privacy, misleading parents about their children’s communications through Messenger Kids, and misrepresenting the access given to app developers to private user data. The proposed changes would include a blanket prohibition on monetizing data collected from users under 18 and other expanded limitations, including the use of facial recognition technology, to provide additional protections for users.
The FTC has taken action against Facebook three times since 2011, with the 2012 order barring the company from misrepresenting its privacy practices. The 2020 privacy order required Facebook to pay a $5 billion civil penalty and expand its privacy program, including an independent third-party assessor to evaluate the effectiveness of Facebook’s program.
According to the Order to Show Cause, the independent assessor identified gaps and weaknesses in Facebook’s privacy program that pose substantial risks to the public. The FTC has alleged that Facebook violated both the 2012 and 2020 orders by continuing to give app developers access to users’ private information after promising in 2018 to cut off such access. The FTC also alleges that from 2017 to 2019, Facebook misrepresented that parents could control whom their children communicated with through Messenger Kids.
Under the proposed changes, Meta would be required to obtain written confirmation from the assessor that its privacy program is in full compliance with the order’s requirements before releasing new or modified products, services, or features. The proposed changes would also require Meta to ensure compliance with the FTC order for any companies it acquires or merges with and honor those companies’ prior privacy commitments.
The proposed modifications are based on the agency’s authority under Section 5(b) of the FTC Act and Commission Rule 3.72, which allow the Commission to modify a final order when the “public interest” may require such action. Meta has 30 days to respond to the proposed findings from the agency’s investigation.
In response to the proposed changes, Meta has stated that it disagrees with the FTC’s allegations and believes that it has complied with the 2020 privacy order. Meta has also pointed out that the proposed changes would go beyond the scope of the 2020 order and would set a concerning precedent for other companies.
The lead staff attorneys on the matter are Reenah Kim, Evan Mendelson, and Olivia Jerjian from the FTC’s Bureau of Consumer Protection.
The proposed changes to the 2020 privacy order, if approved, would apply to Meta’s other services, including Instagram, WhatsApp, and Oculus. The FTC’s action against Facebook highlights the increasing regulatory scrutiny faced by tech companies over privacy concerns and their use of user data.
