The Federal Trade Commission (FTC) has imposed a 5$ billion fine on Mark Zuckerberg for privacy violations. Zuckerberg will also have to comply with new restrictions on his business and must personally certify that the company complies with the privacy policies.
The investigation found that Facebook lied to users on how to protect their privacy, by allowing third parties to collect data and not to create a reasonable program to avoid it. The agency also explained that the company used the phone numbers of users illegally and without their permission.
According to the FTC, the fine is part of an agreement in which the technology giant accepts new restrictions on its business model. This is the second largest fine imposed by the Commission, and the highest fine is imposed on a technology company because of a privacy violation.
FTC said that Facebook did not comply with the agreement with the commission in 2012, where the company was required to inform users about how to deal with their data. After the new agreement and payment of the fine, Facebook must establish a privacy committee to monitor the company's decisions. This committee will be developed by the Facebook Board.
The agreement today also includes Facebook's commitment to pay $ 100 million to the Securities and Exchange Commission to cancel charges against the company to deceive investors about the risks of its anti-privacy practices.
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