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."
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.