What Facebook's New Government-Enforced Privacy Restrictions Mean For You

Facebook must comply with new privacy restrictions on how it handles your data. Here’s what they are and how they’ll apply to you

- Mark Hachman

Facebook’s record $5 billion fine that it will pay to the Federal Trade Commission will do little to stop Facebook from trying to slurp up as much of your data as it can, with two exceptions: facial recognition and telephone numbers. Instead, the Facebook-FTC agreement is primarily intended to stem the tide of your data flowing through Facebook and out to third-party developers.

In late July, Facebook agreed to pay a $5 billion fine and submit to a 20-year oversight program as part of an FTC order (go.pcworld.com/ftcr) agreed to by both companies—punishment for Facebook’s unwillingness to adhere to another, separate 2012 FTC order that also governed user data privacy. As many have noted, the $5 billion fine is a slap on the wrist: Facebook recorded $15 billion in revenue for the March 2019 quarter alone.

Many of the changes the FTC will enforce will be structural, and their impact on how Facebook does business can’t be accurately predicted. Probably the most significant will be the creation of an independent privacy committee, named by the company’s board. Those members can be fired only by a supermajority of the board itself. That’s significant, as chief executive Mark Zuckerberg personally owns a majority of Facebook shares, giving him control over the company.

Facebook will also be forced to name privacy compliance officers, who must be approved by the board’s privacy committee. These privacy officers will be responsible for enforcing the FTC order, and will provide quarterly certifications to the FTC that they’re adhering to it. Once a year, Zuckerberg and the privacy committee will also be subject to an annual review by the FTC.

HOW FACEBOOK WILL BE ALLOWED TO USE FACIAL RECOGNITION