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Meta Accuses FTC of Overstepping Legal Authority in Attempt to Revise Facebook Privacy Settlement
Meta, the parent company of Facebook and Instagram, is accusing the Federal Trade Commission (FTC) of attempting to exert more power than the agency is granted by law. The agency is planning to revise its 2020 settlement with Facebook over the company’s privacy violations, which fined the company $5 billion, a move Meta says is illegal. The social networking company is seeking to block the agency’s proceeding that would determine the settlement revisions.
The Allegations
“The FTC seeks to substitute itself for this court by taking ‘further enforcement action’ and ‘modifying’” the settlement, Meta’s lawyers wrote in a motion for an injunction filed Wednesday in Washington, D.C. District Court. “This court—not the FTC—has exclusive jurisdiction.” Federal judge Timothy Kelly approved the original settlement, and the motion was filed to him.
The FTC’s Response
For its part, the FTC has faulted Facebook for violating the terms of the settlement multiple times. The agency announced it would convene a meeting to change the settlement on May 3 with plans to penalize Meta further by banning any use of facial recognition and any monetization of children’s data.
The Legal Battle
Meta alleges that the FTC is trying to circumvent the court because the agency’s leaders know their intended modifications would not pass legal muster: “The consent order is clear that only the federal court, not the FTC, can enforce or modify it, and the FTC is bound to comply with its terms,” a Meta spokesperson told Bloomberg. Meta and the FTC did not immediately respond to Gizmodo’s requests for comment.
The History of the Settlement
The original settlement, the biggest fine in the FTC’s history, obligated Facebook to pay $5 billion for mishandling its users’ data, abusing their trust, and failing to safeguard their privacy. The conditions of the settlement did not prohibit Facebook from collecting data and sharing it with third parties, however. The fine came on the heels of the Cambridge Analytica scandal, which saw the data of 87 million users harvested under the guise of a quiz app but used for political marketing.
Conclusion
The legal battle over Facebook’s privacy practices continues, with Meta now accusing the FTC of overstepping its legal authority in trying to revise the company’s 2020 settlement. The FTC, meanwhile, argues that Facebook has repeatedly violated the terms of the settlement. It remains to be seen how this dispute will be resolved.
FAQs
What is Meta?
Meta is the parent company of Facebook and Instagram.
What is the 2020 settlement between Facebook and the FTC?
In 2020, Facebook agreed to pay a $5 billion fine to settle charges that it mishandled its users’ data and failed to safeguard their privacy. The settlement allowed Facebook to continue collecting data and sharing it with third parties.
Why is Meta accusing the FTC of overstepping its legal authority?
Meta is accusing the FTC of trying to revise its 2020 settlement with Facebook in a way that is illegal. Meta argues that only the federal court, not the FTC, has the authority to enforce or modify the settlement.
What penalties does the FTC want to impose on Meta?
The FTC plans to penalize Meta further by banning any use of facial recognition and any monetization of children’s data.
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