Did you hear the news about Facebook’s five-billion-dollar footnote? The tech giant recently disclosed that it’s set aside a massive sum to satisfy a probable FTC fine stemming from the social media company’s election-adjacent activities.
The situation has sparked conversations about the efficacy of FTC fines, but it also serves as a reminder that authorities are serious about online privacy. Is your company up-to-date on all the rules and regulations?
Facebook’s Probable $5 Billion Fine
You’ve heard by now: Facebook is in deep with the Federal Trade Commission over privacy breaches. Due to a previous settlement with the nation’s consumer watchdog agency, the social media company will soon likely remit a record-breaking fine.
But Facebook doesn’t seem too concerned. In its latest earnings report, the probable loss is quaintly mentioned in a footnote explaining that the “range of loss in this matter is $3.0 billion to $5.0 billion.” Yes, the company’s net earnings are down about 50 percent from the same period last year, but the downturn, which is largely tied to legal fees paid in the wake of this most recent hiccup, doesn’t mean Facebook is heading towards a period of struggle. The company is still healthy, despite the looming giant fine.
Online Privacy Considerations for Online Businesses
Since Facebook is one of the most successful companies in the world, it can afford to pay multimillion-dollar fines.
But would your business be able to handle a financial whooping, courtesy of the FTC?
Though the United States doesn’t have a universal privacy law, there are several federal laws that protect certain information. Moreover, states like California have comprehensive online privacy laws. Any website that grants access to people in California must comply. And let’s not forget about the EU’s General Protection Data Rule.
Connect with an Internet Law Attorney
The Gordon Law Group works with companies on various Internet law matters, including FTC compliance and online privacy issues. Whether you need counsel for a transactional or litigatory matter, we’re here to work and advocate on your behalf.