In 2020, the Federal Trade Commission sued Facebook (now Meta), alleging that “the company illegally maintain[ed] its personal social networking monopoly through a years-long course of anticompetitive conduct.” This decision was predicated on evidence that showed Meta was operating against the spirit of anti-trust legislation and resulted in a privacy order that required the company to pay a $5 billion civil penalty. It also expanded Meta’s required privacy program and the role of an independent third-party assessor’s in evaluating the effectiveness of said program.
Despite this repeated pattern of misconduct, Meta is back in the news for misleading parents with respect to child protections. The FTC claims guardians did not have control over who their children could contact in the Messenger Kids app; this blatant disregard for consumer rights led to a proposal that would alter that 2020 agreement. These changes include barring Facebook from profiting off data collection from users under the age of 18, including in its virtual reality business. It would also face expanded limitations on using facial recognition technology.
In addition, Meta would also be required to pause launching new products and services without “written confirmation from the assessor that its privacy program is in full compliance.” Furthermore, Meta would be required to ensure compliance for any companies for whom it acquires or merges as well as to honor those companies’ prior privacy commitments (this is important as it does not allow Meta to subvert this order through a subsidiary). Finally, it would strengthen provisions related to privacy review, third-party monitoring, data inventory, access controls and employee training.
Remarkably, this is the third time the FTC has taken action against Meta for allegedly failing to protect users’ privacy. At this point, users should assume that the company is not acting with its privacy interests in mind, no matter what it says in press releases or to regulators. Our modern media ecosystem is dominated by social media companies like Meta, and they should be held to a higher standard given the influence they exert over our daily lives. These changes represent another opportunity for Meta to get it right—time will tell whether they take advantage of it.
Legal Matters
The FTC Comes Down on Facebook
