FTC set to announce $5bn Facebook settlement, largest US civil penalty ever

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FTC set to announce $5bn Facebook settlement, largest US civil penalty ever

US Federal Trade Commission (FTC) is expected to announce as early as by Wednesday (July 24th) US morning trading hours that the California-based social networking mogul, Facebook Inc. had agreed to a $5 billion settlement over potential allegations that it had been mishandling user privacy data, at least two people briefed on the matter had revealed on Tuesday, the 23rd of July.

Aside from that, one of the two FTC spokesmen briefed on the subject-matter said in terms of anonymity on Tuesday (July 23rd) that the world’s largest internet service provider had agreed to form a board committee to keep an eye on potential privacy concerns.

Besides, a Washington Post report published on Tuesday (July 23rd) had added that the Federal Trade Commission would charge Facebook Inc. on mishandling users’ phone numbers collected as part of its two-factor authentication, citing at least two people familiar with the issue.

More critically, Tuesday’s (July 23rd) Washington Post report had also added that FTC had been planning to accuse Facebook Inc. of another charge involving a facial recognition tool, about which Facebook had failed to provide sufficient information to more than 30 million users.

Nonetheless, the FTC announcement on Facebook’s $5 billion settlement, expected to be on-air as early as by tomorrow (July 24th) morning US trading hours, would remark the largest civil penalty ever paid to the Federal Trade Commission.