SEC Investigating If Facebook Gave Investors Enough Warning About Data Issue, WSJ Says
The following is an excerpt from ABRAR AL-HEETI | July 12, 2018 | cnet.com |
The Securities and Exchange Commission is looking into whether Facebook gave investors enough warming about the possible misuse and improper gathering of users' data, The Wall Street Journal reported Thursday.
In March, it was revealed that data on 87 million Facebook users was allegedly misused by political consultancy Cambridge Analytica during the 2016 US presidentail campaign. Earlier this month, several federal agencies, including the SEC, the Federal Trade Commission and the Federal Bureau of Investigation joined the Department of Justice's inquiry into the data scandal.
The SEC has requested information from Facebook in an effort to learn how much the social networking company knew about Cambridge Analytica's data use, according to the Journal. In addition, the SEC reportedly wants to learn how Facebook analyzed its risk as developers shared data with others against Facebook's policies.
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