FTC launches an investigation into the Facebook privacy scandal. FB stocks plummet after news breaks

[ItsMitch]

Source: https://www.cnbc.com/2018/03/26/ftc-confirms-facebook-data-breach-investigation.html

The FTC has begun a formal investigation into days after the scandal broke with Cambridge Analytica. This is coming off the back of days of nothing but setbacks for Facebook and the investors are beginning to feel the pain of the bad press. Stocks are down for a consecutive day now, down by 5% after the news broke. 

Quote

"The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices," the agency said in a statement.

The FTC declined to confirm last week that it was investigating Facebook and whether it violated a consent decree the tech company signed with the agency in 2011.

The consent decree required that Facebook notify users and receive explicit permission before sharing personal data beyond their specified privacy settings.

 

 

This is not looking good for Facebook as a punishment for breaching privacy laws can be priced at $40'000 per violation. The FTC published a full statement on the matter

 

Quote

 

Tom Pahl, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection, issued the following statement regarding reported concerns about Facebook’s privacy practices:

“The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is an enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act. Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices.”

 

Well, if the stocks keep dropping at the rate they are I'm sure investors will just jump ship, many of them have already jumped after the news broke. Congress has demanded answers from Zuckerberg who's scheduled to testify soon. Overall this whole situation is just getting worse and worse for Facebook. Their reputation is being dragged right through the mud after bad press after bad press.

[Blackie Sheen]

Hopefully, Facebook reacts to this not just by a temporary measure to appease the investors but by a long term engagement to privacy for their consumers. I dont expect that from Facebook though

[orbitalbuzzsaw]

Facebook being investigated and forced to get their shit together. Finally.

[Energycore]

Facebook down more than 9% since market open

[HarryNyquist]

The bubble is about to pop for social media. Facebook has been the main influence on all social media practices. If Facebook proper is doing this, then anything they've touched is doing this as well. WhatsApp and Instagram, especially.

 

I wouldn't doubt that other social platforms are ALSO doing this kind of thing. Twitter, Tumblr, Snapchat, whatever else that isn't completely decentralized or self-hosted.

 

This is gonna quickly become pandora's box if the FTC really digs in. Who knows if they'll actually do that, though. I certainly don't expect Facebook to change their behavior, either. All they'll do is send it further underground.

[Taf the Ghost]

Anti-Trust! Anti-Trust! Anti-Trust!

[ItsMitch]

Just now, Energycore said:

Facebook down more than 9% since market open

Breaking footage of the investors faces after they hear of the news

[Dylanc1500]

9 minutes ago, Energycore said:

Facebook down more than 9% since market open

So how long till MySpace comes back? 

[ItsMitch]

Just now, Dylanc1500 said:

So how long till MySpace comes back? 

Bring back Bebo. 

[Dylanc1500]

Just now, SC2Mitch said:

Bring back Bebo. 

BBB!

Go one more step back and AOL could make a return.

 

[Tieox]

Fuck all that, bring back Windows Live Messenger  

[The Owl]

Hi5

[Dylanc1500]

9 minutes ago, Kierax said:

Fuck all that, bring back Windows Live Messenger  

If only AIM had lasted a few more months... lol

 

We'd be back to IM days all over again. Creepy chat rooms FTW!

[Taf the Ghost]

32 minutes ago, Dylanc1500 said:

If only AIM had lasted a few more months... lol

 

We'd be back to IM days all over again. Creepy chat rooms FTW!

One IRC chat room to rule them all.

 

Seriously, we're almost on our way back to IRC-like and IM. Social Media was a mistake.

[lavablade02]

So is the 40,000$ multiplied by 50 million people who had their data exploited? Because that would be 2 quadrillion

[Dylanc1500]

22 minutes ago, Taf the Ghost said:

One IRC chat room to rule them all.

 

Seriously, we're almost on our way back to IRC-like and IM. Social Media was a mistake.

Introducing "The Facebook Chat"

[Darkmaster29]

Where can I buy FB stock? They are going to skyrocket in 6 months

[Darkmaster29]

1 hour ago, The Owl said:

Hi5

What year is this?

[ItsMitch]

24 minutes ago, lavablade02 said:

So is the 40,000$ multiplied by 50 million people who had their data exploited? Because that would be 2 quadrillion

Assuming they fine them for everyone anyway, but it's looking at billions of dollars in fines if they do get punished. 

[Bsmith]

*hears stock prices falling*

well, I honestly won't miss them

[Blademaster91]

23 minutes ago, SC2Mitch said:

Assuming they fine them for everyone anyway, but it's looking at billions of dollars in fines if they do get punished. 

Isn't Facebook worth over $400 billion USD? A few billion dollars in fines as mentioned likely wouldn't cause Facebook to change their behavior,if anything they would hide behind more disclaimers and permissions most people would just click through.

[Bsmith]

9 minutes ago, Blademaster91 said:

Isn't Facebook worth over $400 billion USD? A few billion dollars in fines as mentioned likely wouldn't cause Facebook to change their behavior,if anything they would hide behind more disclaimers and permissions most people would just click through.

being worth a specific amount doesn't mean that you have it as spendable cash.
Outside of that, there is only so much you can do within the law.