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FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

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Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#81

Post by throwaway2048 »

djsumdog wrote: post #72
jawns wrote: post #8

A lot of the terms of the settlement deal with organizational changes, but when you look at the very specific privacy restrictions that Facebook agreed to, it's really, really problematic stuff: * Facebook is prohibited from using telephone numbers obtained to enable a security feature (e.g., two-factor authentication) for advertising; * Facebook must provide clear and conspicuous notice of its use of facial recognit…

> So from Facebook's perspective, this is probably a big win. $5 billion is a lot, but Facebook is huge. Even considering, it's probably not pocket change for them, but they are getting a benefit from it for sure. They are buying public opinion. "Look at us..we took a big fine and agreed to respect your privacy .. you can trust us now." It's essentially a very expensive ad, used to rebuild trust with their cattle; I…

The biggest thing that makes the 5 billion fine a bargin:

The FTC settlement indemnifies Facebook for "any and all claims prior to June 12, 2019"

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#82

Post by caymanjim »

throwaway2048 wrote: post #19
b_tterc_p wrote: post #14

I get that fines don’t always offset the benefit gained from shady practice, but frankly I don’t think Facebook got $5B from this. That’s ~25% of last year’s net income. That’s a punch in the jaw.

Considering their stock rose significantly after this fine was announced, I don't think the people making money from Facebook agree with you.

Investors have known for a long time that a fine was coming. This was already priced-in. Facebook has been planning on this and reporting it in SEC filings, which they are required by law to do. Now the matter is closed, and for the amount that they already warned investors it would cost. There should not have been any downward movement in the price, and there wasn't. Now the matter is put to rest, and the market likes that. If anything, the price should have gone up. Stability and predictability are good.

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#83

Post by snvzz »

SpicyLemonZest wrote: post #80
snvzz wrote: post #69

Earlier quoted context omitted.

It's basically nothing, compared to what they gain from not giving a damn about privacy. Which they'll continue to do.

Is there a specific amount you think they gain from not giving a damn about privacy? $5B is a lot of money! I worry that if you think it's "basically nothing", you would've thought that no matter how much it was.

Facebook's whole business model is to not give a damn about privacy.

Thus, all the money they make. All of it. The FTC now takes a small portion.

See Facebook care. (not)

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#84

Post by supercanuck »

jawns wrote: post #8

A lot of the terms of the settlement deal with organizational changes, but when you look at the very specific privacy restrictions that Facebook agreed to, it's really, really problematic stuff: * Facebook is prohibited from using telephone numbers obtained to enable a security feature (e.g., two-factor authentication) for advertising; * Facebook must provide clear and conspicuous notice of its use of facial recognit…

Seems like this is a win for consumers too if they adhere to the conditions, no?

If they agree to not do bad things, then do the bad things, seems then we have a bad actor.

I doubt that any individual or lawsuit could affect this kind of change.

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#85

Post by 4ntonius8lock »

zxcvbn4038 wrote: post #70

Does it bother anyone else that Facebook is being fined $5 billion while Equifax, a company with a history of anti-consumer activity and privacy violations going back decades, the company that congress was forced to enact the Fair Credit Reporting Act to contain, and who gave away all the personal information for over a hundred million people through its own negligence, was fined a mere $650 million? Do you get the i…

It bother's me there are worse enemies.

I'm still happy to see our lesser enemies be curtailed.

Just as it bother's me that there are kids starving in africa... but I still donate to my local food bank. A worse evil doesn't mean we can't improve on other evils.

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#86

Post by rad_gruchalski »

Someone I work with found this:

The interesting part is in the write up from The Verge (https://www.theverge.com/2019/7/24/20707013/ftc-facebook-set...):

> "The settlement’s $5 billion penalty makes for a good headline," FTC commissioner Rohit Chopra wrote in his dissent. "But the terms and conditions, including blanket immunity for Facebook executives and no real restraints on Facebook’s business model, do not fix the core problems that led to these violations."

$5 billion of cost with shareholders' money. Not bad.

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#87

Post by SpicyLemonZest »

snvzz wrote: post #83
SpicyLemonZest wrote: post #80

Earlier quoted context omitted.

Is there a specific amount you think they gain from not giving a damn about privacy? $5B is a lot of money! I worry that if you think it's "basically nothing", you would've thought that no matter how much it was.

Facebook's whole business model is to not give a damn about privacy. Thus, all the money they make. All of it. The FTC now takes a small portion. See Facebook care. (not)

But you're equivocating here. They're allowed to not give a damn about privacy in the broad sense you're using; the FTC fined them only for the small subset they weren't allowed to do.

If you think the government ought to just ban Facebook, sure, whatever, but that's not the FTC's job.

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#89

Post by blackoil »

djsumdog wrote: post #74
zxcvbn4038 wrote: post #70

Does it bother anyone else that Facebook is being fined $5 billion while Equifax, a company with a history of anti-consumer activity and privacy violations going back decades, the company that congress was forced to enact the Fair Credit Reporting Act to contain, and who gave away all the personal information for over a hundred million people through its own negligence, was fined a mere $650 million? Do you get the i…

What is the proportional hit though? You need to compare the percentage/ratio of the fine to the companies net worth and also to their annual revenue and profit margins.

It should be based on no. of user impacted and avg. impact to each user. Revenue/Margin are should not be primary driver. We don't convict murderer/thief depending on their net worth (if any it is tilted on wrong side).

Re: FTC Imposes $5B Penalty and Sweeping New Privacy Restrictions on Facebook

#90

Post by turk73 »

rad_gruchalski wrote: post #86

Someone I work with found this: The interesting part is in the write up from The Verge ( https://www.theverge.com/2019/7/24/20707013/ftc-facebook-set... ): > "The settlement’s $5 billion penalty makes for a good headline," FTC commissioner Rohit Chopra wrote in his dissent. "But the terms and conditions, including blanket immunity for Facebook executives and no real restraints on Facebook’s business model, do not fix…

It's a drop in the bucket. And that's the problem.

Make these penalties equal 50% of annual revenue. That will get their attention.

Make a penalty where everyone in the company's wages are garnished.

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