Personal Data: The Privacy Paradox

Context

Your platform promises user data control, but internal discussions reveal data-sharing practices, especially with third-party apps and facial recognition, are not fully transparent. Changing this impacts revenue; continuing risks legal and reputational damage.

Dilemma

Do you:
A) Maintain current data-sharing, prioritizing platform functionality and revenue, or
B) Restructure for full transparency and user control, potentially impacting revenue and experience?

Summary

The Federal Trade Commission (FTC) fined Facebook $5 billion for violating a 2012 privacy order, imposing new restrictions and a corporate restructuring. Facebook misled users about their privacy controls, sharing data with third-party apps. The settlement creates an independent privacy committee, compliance officers, and enhanced oversight. It requires pre-implementation privacy reviews, data compromise documentation, and stricter app oversight. Facebook must also provide clear facial recognition notices and encrypt passwords. The FTC alleges Facebook misrepresented privacy settings and used security phone numbers for ads.

Resources:

• https://www.ftc.gov/news-events/news/press-releases/2019/07/ftc-imposes-5-billion-penalty-sweeping-new-privacy-restrictions-facebook