The following is an excerpt from David Zielenziger | August 10, 2012 | ibtimes.com |
Facebook (Nasdaq: FB), the No. 1 social networking site, has finally settled charges with the U.S. Federal Trade Commission that it deceived members about their privacy. Although it won’t pay a fine, it agreed to be monitored by the FTC for 20 years. If violations are found, it could be subjected to civil penalties up to $16,000 per offense.
Facebook, of Menlo Park, Calif., had agreed to a preliminary settlement with the FTC last November, while still a private company. “We intend to monitor closely Facebook’s compliance with the order,” a filing by FTC Chairman Jon Lebowitz said.
The move follows by a day settlement of similar charges of privacy violations by Google (Nasdaq: GOOG), the No. 1 search engine, which also agreed to pay a record $22.5 million fine to the FTC. Both companies have now signed consent decrees with the agency in which they promise not to abuse customer privacy.
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