Facebook must adopt new policies to protect data shared by users on the social network and pay a $5 billion fine, as part of an agreement with the Federal TradeCommission.
The giant must extend its privacy policy to Facebook, Instagram and WhatsApp and adopt a corporate system of checks and balances to remain compliant, according to the FTC order. Facebook must also have a data security program in place to ensure information such as users' phone numbers is protected.
oversight Mark Zuckerberg's of privacy and security, requiring Facebook to create a new privacy committee with independent board who cannot be removed without a two-thirds vote of shareholders. Zuckerberg and his designated compliance officers must submit compliance reports to the FTC.
In addition, a third-party auditor will monitor Facebook's progress.
The committee approved the settlement by a 3-2 vote, with dissenting commissioners seeking tougher action against Zuckerberg.
The settlement achieved more than the FTC could have achieved by going to court.
It is worth noting that Facebook admitted to breaking a previous agreement regarding privacy.
Zuckerberg, in a Facebook post , said the settlement would lead to "some big structural changes in how we build products and manage this company."
Of course, the changes will likely require more time to bring new features to Facebook, Instagram, and WhatsApp.
He stressed that it is the company's responsibility to protect citizens' privacy. "We are already working hard to meet that responsibility, but now we are going to set a completely new standard for our industry," he said.
This settlement concludes a two-year FTC investigation, sparked by the 2018 Cambridge Analytica scandal
Earlier this week, the FTC, the Consumer Financial Protection Bureau and 50 states reached a settlement with credit reporting company Equifax over allegations that it failed to implement adequate security measures to prevent a massive data breach. Equifax must pay at least $575 million.
Previously, the FTC's highest fines were to Google, which paid $22.5 million in 2012, and Upromise, which paid $500,000 in 2017.
