It turns out the company will pay a price after all for its endless scandals. But don’t worry, Facebook made $22 billion last year.
Facebook is notching a record breaker. The Federal Trade Commission on Wednesday announced that Facebook agreed to pay a $5 billion fine over privacy violations and its failure to inform tens of millions of users about a data leak that happened years ago. The fine is the largest the US regulator has levied against a tech company.
The settlement will require Facebook CEO Mark Zuckerberg to certify that the company is taking steps to protect user privacy. A false statement could potentially expose them to penalties.
Facebook CEO Mark Zuckerberg said in a statement Wednesday that the social network would make “major structural changes” to how it builds products and conducts business.
“We have a responsibility to protect people’s privacy,” Zuckerberg wrote. “We already work hard to live up to this responsibility, but now we’re going to set a completely new standard for our industry.”
Facebook then nominated Michel Protti, the company’s vice president of marketing on partnerships, to serve as chief privacy officer.
The company said it nominated longtime Facebook executive Michel Protti for the position.
Part of the FTC agreement required that Face book institute an independent privacy committee and put compliance officers in place.
Protti was previously Facebook’s vice president of product marketing on partnerships. He’s been with the company since December 2013, according to his LinkedIn profile.
Protti will lead Facebook’s privacy program and be required to “independently submit to the FTC quarterly certifications that the company is in compliance with the privacy program.”