US Regulators Under Scrutiny As They Look To Punish Facebook

Federal privacy regulators are under scrutiny in Congress as y negotiate a record fine with Facebook to punish company for alleged violations of its users’ privacy.

Federal Tre Commission is considering a rare action holding CEO Mark Zuckerberg personally accountable for Facebook’s alleged failure to hor a 2011 agreement over privacy lapses. ncy also may limit how giant social network targets vertising to its massive user base — potentially making action far more than a regulatory slap on wrist.

Beyond a fine expected to run as high as $5 billion, comprehensive action by FTC could mark a watershed in federal action against tech industry in name of consumer privacy.

FTC Chairman Joseph Simons and his four fellow commission members are coming before House Energy and Commerce subcommittee on consumer protection at a hearing Wednesday. Simons, appointed by President Donald Trump in October 2017, is an expert in antitrust law who heed FTC’s competition division under President George W. Bush.

By usual practice, FTC — an independent ncy — is split 3-2 between Republican and Democratic members. Simons has vocated tougher enforcement action against tech companies, and must obtain agreement of at least two or commissioners for any action on Facebook.

Lawmakers have started work on a new national privacy law that could sharply curtail ability of biggest tech companies to collect and make money off people’s personal data. role of FTC as an enforcer of privacy protections is a key issue in debate over legislation. Consumer privacy vocates and Democratic lawmakers, saying ncy lacks teeth, have pushed for changing law to expand its powers and funding to police privacy.

FTC doesn’t have authority, for example, to levy civil money penalties for first violations for most unfair or deceptive practices. It can only issue orders halting conduct, as it did with Facebook in 2011.

ncy would be expected to write new privacy rules should Congress pass a new law.

Behind momentum for a new law is rising concern over a string of scandals and compromise of private data held by Facebook, Google and or tech giants that have reaped riches by aggregating consumer information. industry has tritionally been lightly regulated and has resisted closer oversight as a threat to its culture of free-wheeling invation.

Republicans have generally opposed an expansion of federal authority, but in wake of Facebook and or privacy scandals, some have taken a more open view toward FTC’s powers and funding. Some business groups are also proposing an expanded role in privacy protection for FTC.

2011 consent decree with FTC bound Facebook to a 20-year privacy commitment. Violations could subject company to fines of $41,484 per violation per user per day. agreement requires that Facebook users give “affirmative express consent” any time that data y haven’t me public is shared with a third party.

ncy started investigating Facebook’s privacy practices more than a year ago after reports surfaced that British political consulting firm Cambridge Analytica h improperly accessed data of as many as 87 million Facebook users without ir consent.

Lawmakers of both parties are pressuring FTC to act decisively against Facebook in light of alleged failure to live up to that commitment.

ncy should quickly complete its investigation and “compel sweeping changes to end social network’s pattern of misuse and abuse of personal data,” Republican Sen. Josh Hawley of Missouri and Sen. Richard Blumenthal, a Connecticut Democrat, said in a letter Monday to Simons. Both are members of Senate Judiciary Committee.

“ Facebook consent-decree violations have been blatant and brazen, an offensive defiance that ds insult to injury,” y wrote. y called $3 billion to $5 billion fine anticipated by Facebook “a bargain” for company that would make FTC look like “traffic police handing out speeding tickets to companies profiting off breaking law.”

“Fines alone are insufficient,” Hawley and Blumenthal said. “Far-reaching reforms must finally hold Facebook accountable to consumers.”

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