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Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

nytimes.com

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Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#11

Post by danpalmer »

oh_sigh wrote: post #7
spaceheretostay wrote: post #3

Isn't that just like 1 month's worth of revenue? That amounts to absolutely nothing in today's world, not even an incentive to reduce the bad behavior. Jail time for lawbreaking executives needs to happen . The financial penalties do not dissuade bad behavior or act as a deterrent, so the same crimes will continue to be committed. Are there any peer-reviewed studies looking at deterrence of financial/tech/privacy cri…

1 month of revenue is how many months of profit?

They are fairly high margin relative to most industries, so probably less than 2 months of profit would be my guess.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#12

Post by busymom0 »

This is pocket change for them. Reminds me of how they fine oil companies $50,000 and another $450,000 for violations. When they are making billions off of violating user privacy and will continue to keep using that user data for future business, this fine is nothing to them. It's like I manipulatively steal $10 from a million people and only lose a few bucks. They still profited.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#14

Post by spaceheretostay »

zavi wrote: post #10
TACIXAT wrote: post #6

This would be awesome if it applied to security breaches as well. Not sure how you would fine OPM, but there are a ton of consumer companies that have leaked data like a sieve.

You cannot fine companies for being technically incompetent.

Surely you can - that could amount to criminal negligence which is definitely a crime.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#15

Post by matt4077 »

minimaxir wrote: post #2

> Every insider I've spoken to said any FTC fine on Facebook under $10 billion would be seen as a massive win, showing firm won't face serious consequences for privacy violations. Wall St. seems to agree in response to news of $3-$5b settlement [$FB up 4% after hours] https://twitter.com/lhfang/status/1121148735818358784

Those insiders may just be lowering expectations, preparing their audience to consider rather bad news as a “massive win”.

After all, the insiders most familiar with the matter are those deciding how much to set aside for its eventual resolution. There are rules for how to account for the inherent uncertainty, and massively underestimating the loss would just set them up for new trouble, i. e. a shareholder lawsuit.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#16

Post by rooam-dev »

zavi wrote: post #10
TACIXAT wrote: post #6

This would be awesome if it applied to security breaches as well. Not sure how you would fine OPM, but there are a ton of consumer companies that have leaked data like a sieve.

You cannot fine companies for being technically incompetent.

That is not an excuse. Imagine not fining people for reckless driving.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#17

Post by crushcrashcrush »

product50 wrote: post #13

Before this thread becomes a Facebook bashing session, please keep in mind that Equifax leaked all your SSN data along with names and addresses and got away with no fines.

Leaking this data wasn't an intrinsic part of their business model.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#18

Post by blihp »

oh_sigh wrote: post #7
spaceheretostay wrote: post #3

Isn't that just like 1 month's worth of revenue? That amounts to absolutely nothing in today's world, not even an incentive to reduce the bad behavior. Jail time for lawbreaking executives needs to happen . The financial penalties do not dissuade bad behavior or act as a deterrent, so the same crimes will continue to be committed. Are there any peer-reviewed studies looking at deterrence of financial/tech/privacy cri…

1 month of revenue is how many months of profit?

That misses the point: it's effectively a (cheap) speeding ticket for bad behavior over the life of the company. It would be a bargain at twice the price from their point of view.

Re: Facebook Expects to Be Fined Up to $5B by FTC Over Privacy Issues

#20

Post by kazen44 »

zavi wrote: post #10
TACIXAT wrote: post #6

This would be awesome if it applied to security breaches as well. Not sure how you would fine OPM, but there are a ton of consumer companies that have leaked data like a sieve.

You cannot fine companies for being technically incompetent.

what? ofcourse you can.

just look at any industry that puts people in danger when people make technically incompetent mistakes.

even the most basic electrician is held to a higher standard then facebook in this regard...

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