Facebook Agrees to Settle With the Federal Trade Commission + Full Text of Proposed Settlement Agreement

From the FTC Announcement:

The social networking service Facebook has agreed to settle Federal Trade Commission charges that it deceived consumers by telling them they could keep their information on Facebook private, and then repeatedly allowing it to be shared and made public. The proposed settlement requires Facebook to take several steps to make sure it lives up to its promises in the future, including giving consumers clear and prominent notice and obtaining consumers’ express consent before their information is shared beyond the privacy settings they have established.
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The proposed settlement bars Facebook from making any further deceptive privacy claims, requires that the company get consumers’ approval before it changes the way it shares their data, and requires that it obtain periodic assessments of its privacy practices by independent, third-party auditors for the next 20 years.
Specifically, under the proposed settlement, Facebook is:

• barred from making misrepresentations about the privacy or security of consumers’ personal information;

• required to obtain consumers’ affirmative express consent before enacting changes that override their privacy preferences;

• required to prevent anyone from accessing a user’s material more than 30 days after the user has deleted his or her account;

• required to establish and maintain a comprehensive privacy program designed to address privacy risks associated with the development and management of new and existing products and services, and to protect the privacy and confidentiality of consumers’ information; and

• required, within 180 days, and every two years after that for the next 20 years, to obtain independent, third-party audits certifying that it has a privacy program in place that meets or exceeds the requirements of the FTC order, and to ensure that the privacy of consumers’ information is protected.

The proposed order also contains standard record-keeping provisions to allow the FTC to monitor compliance with its order.
Additional Background in the News Release

Also Available: Full Text of Proposed Settlement Agreement Between Facebook and FTC (10 pages; PDF) and Full Text of FTC Complaint v. Facebook and Other Case Documents
See Also: The FTC’s Settlement with Facebook: Where Facebook Went Wrong (via FTC)
See Also: Facebook Downplays Significance Of FTC Privacy Settlement (by Greg Sterling, Search Engine Land)

Filed under: Data Files, Management and Leadership, News