Facebook Stock Drops As FTC Confirms It Is Investigating Privacy Practices
March 26, 2018
Facebook Stock Drops As FTC Confirms It Is Investigating Privacy Practices
Facebook’s stock dropped in early morning trading as the Federal Trade Commission issued a statement confirming that it is investigating the social network’s privacy practices in the wake of the Cambridge Analytica scandal.
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The federal agency’s consumer protection bureau issued a statement that it’s firmly committed to protecting consumer privacy, and will use enforcement actions against those companies that fail to live up to their promises.
“The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook,” said Tom Pahl, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection. “Today, the FTC is confirming that it has an open non-public investigation into these practices.”
The agency’s investigation will focus on whether the Cambridge Analytica data leak, in which the personal information of 50 million Facebook users was collected without their consent, violated a consent decree reached in 2011 regarding its handling of personal user data.