US regulators on Wednesday slapped a record $5 billion fine on Facebook for privacy violations in a settlement requiring the world’s biggest social network to “submit to new restrictions and a modified corporate structure.”
The Federal Trade Commission said the penalty was thelargest ever imposed on any company for violating consumers’ privacy and one ofthe largest penalties ever assessed by the US government for any violation.
“Despite repeated promises to its billions of usersworldwide that they could control how their personal information is shared,Facebook undermined consumers’ choices,” FTC Chairman Joe Simons said.”The magnitude of the $5 billion penaltyand sweeping conduct relief are unprecedented in the history of the FTC. Therelief is designed not only to punish future violations but, more importantly,to change Facebook’s entire privacy culture to decrease the likelihood ofcontinued violations.”