Penalty Amount
$5,000,000,000
The FTC charged Facebook with deceiving consumers about its privacy practices and violating a 2012 consent order. In July 2019, Facebook agreed to pay a $5 billion civil penalty and accept comprehensive new privacy restrictions.
Facebook must pay a $5 billion civil penalty and comply with injunctive relief that imposes sweeping new privacy restrictions.
In-house legal teams should review all customer agreements (e.g., terms of service), vendor contracts, and data processing addendums for clauses related to privacy promises, user consent for data collection and sharing, breach notification procedures, data retention and deletion policies, audit rights, and regulatory compliance. Given the FTC's findings of deceptive practices and violation of the 2012 Consent Order, contracts must be updated to ensure privacy representations are clear and non-misleading, incorporate explicit consent mechanisms for data sharing, mandate compliance with FTC orders, enhance security standards, and strengthen breach notification protocols. Specific changes may include adding language on FTC adherence, revising indemnification to cover privacy breaches, and ensuring data sharing is contingent on verifiable user consent.
Entity
Facebook, Inc.
Also known as: Meta
Industry
Social MediaOfficial Press Release
https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3184-182-3109-c-4365-facebook-inc-matter
182 3109 facebook complaint filed 7 24 19
https://www.ftc.gov/system/files/documents/cases/182_3109_facebook_complaint_filed_7-24-19.pdf
182 3109 facebook order filed 7 24 19
https://www.ftc.gov/system/files/documents/cases/182_3109_facebook_order_filed_7-24-19.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"In the Matter of Facebook, Inc., a corporation"
"FTC Imposes $5 Billion Penalty and Sweeping New Privacy Restrictions on Facebook"
"July 24, 2019"
"Stipulated Order for Civil Penalty, Monetary Judgment and Injunctive Relief"
"The FTC alleged that Facebook violated its privacy promises to consumers and subsequently violated a 2012 Commission order."
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.