After almost a yearlong investigation, Federal Trade Commission announced $5 billion settlement with Facebook on Wednesday. The investigation was mostly into the Cambridge Analytica scandal and other privacy breaches.
FTC alleged that Facebook violated the law by failing to protect data from third parties, serving ads through the use of phone numbers provided for security, and lying to users that its facial recognition software was turned off by default.
In order to settle these charges, Facebook will have to pay $5 Billion and agree to a series of new privacy restrictions on its business. This is the second largest fine ever imposed by the FTC and the largest for a Tech company.
Facebook will be required to conduct a privacy review of every new product or service that it develops, and these reviews must be submitted to the CEO and a third-party assessor every quarter. Facebook will also be required to obtain purpose and use certifications from apps and third-party developers that want to use Facebook user data.