People familiar with the matter told Bloomberg that Facebook could be fined $40,000 per violation per day in the latest data scandal. According to sources, the tech giant violated a 2011 agreement with FTC to keep its users’ personal data safe.
The $40,000 per day fine is for every violation of the agreement, and with millions of Facebook users having their data compromised the fines could climb to hundreds of millions, according to sources.
Jessica Rich who led the FTC’s consumer bureau is confident that if the agency wants to find fault it will find fault. “The penalty could potentially be huge,” said Rich, explaining that the FTC could see each Facebook user as a violation.
The experts estimate the federal government to make hundreds of millions off the data scandal as Facebook compromised the data on more than 50 million users. The data was beamed to a Trump campaign-tied consulting firm, Cambridge Analytica, which used it to create profiles of millions of American voters.
Facebook Caught Red-Handed in the Data Scandal
Federal investigators are now looking into the matter as the transfer breached the promised made by Facebook to settle another similar scandal. Facebook could be also found at fault for illegally shipping data from the U.S. to the U.K. and for misleading users.
David Vladeck who also worked at the FTC confirmed that the agency could “turn the screws up” on the tech giant. The 2011 agreement binds Facebook for two decades. Vladeck thinks that the agreement was clearly breached in the Cambridge Analytica scandal. He expects “serious consequences” for the company.
Facebook’s CEO Mark Zuckerberg is expected to appear before Congress to publicly testify in the scandal. Since the scandal, Facebook’s market value lost nearly $100 billion and counting. The social media platform is no longer one of the world’s five most valuable firms.
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