• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Tech

Facebook $5 Billion U.S. Privacy Settlement Approved by FTC

By
David McLaughlin
David McLaughlin
,
Daniel Stoller
Daniel Stoller
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
David McLaughlin
David McLaughlin
,
Daniel Stoller
Daniel Stoller
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
July 12, 2019, 4:36 PM ET

The U.S. Federal Trade Commission approved a record privacy settlement against Facebook requiring the social-media company to pay about $5 billion to resolve an investigation stemming from the Cambridge Analytica data scandal.

The FTC’s settlement was approved by a vote of 3-2, according to two people familiar with the matter. It caps a probe that opened in March 2018 after news that Cambridge Analytica, a consulting firm hired by President Donald Trump’s campaign, obtained user data from a researcher who created a personality quiz app on the social network.

The FTC’s settlement, the largest privacy fine in the agency’s history, marks the most significant action yet against Facebook over a series of mishaps that have compromised users’ data and sent the company reeling from one crisis to another. The mishandling of data has spurred efforts in Washington to pass legislation to better protect the personal information collected by the nation’s technology firms before a window closes ahead of the 2020 presidential campaign.

As the probe dragged on, FTC Chairman Joe Simons came under increasing pressure from lawmakers and privacy advocates to craft a tough settlement that would protect users’ privacy. The deal is likely to leave many critics of the company unsatisfied given the agency’s two Democratic commissioners, Rebecca Kelly Slaughter and Rohit Chopra, voted against it.

Facebook declined to comment.

While the FTC settlement removes a major burden weighing on the company, Facebook is still grappling with regulatory scrutiny on a host of other fronts. European Union officials are pursuing multiple data-protection investigations, while U.K. antitrust authorities are examining the company’s dominance in digital advertising.

In the U.S., the Justice Department and the Securities and Exchange Commission opened investigations related to the Cambridge Analytica scandal. Facebook declined to comment on the status of those probes. Separately, the attorney general for Washington, D.C., has sued the company, claiming it failed to safeguard users’ data. Other state attorneys general are also investigating.

The FTC is poised to continue scrutiny of Facebook. As part of a broad agreement with the Justice Department dividing oversight of four of the biggest tech companies, the agency will take responsibility for a potential antitrust investigation into Facebook. One area of focus is likely to be the company’s acquisitions of Instagram and Whatsapp.

The settlement ranks among the highest at the FTC, which reached a $10 billion settlement with Volkswagen AG in 2016 for deceptive advertising in the emission-cheating scandal involving diesel models. The agency’s previous record fine in a privacy action came in 2012, when Alphabet Inc.’s Google paid $22.5 million to settle claims it misrepresented its privacy assurances to Apple Inc.’s Safari users.

The FTC can only impose fines on companies that have previously agreed to settle claims with the agency under consent decrees, but not on first-time offenders. The agency has lobbied for greater authority to penalize wrongdoers in privacy cases, though some have questioned whether it was up to the job of taking advantage of the limited power it has now.

The commission’s 2011 consent decree with Facebook addressed a litany of deceptive practices by the social-media company. Facebook, for example, allowed profile information — photos, education, place of employment — that a user chose to restrict to “Only Friends” or “Friends of Friends” to be accessible to apps that the person’s friends used. Facebook also promised users that it wouldn’t share personal information about them with advertisers when in fact the company identified to advertisers the users who clicked on their ads or to whom ads were targeted.

Under the 2011 settlement, Facebook was required to implement a privacy program, obtain express consent from users before making changes that override privacy preferences, and undergo regular privacy audits.

The Cambridge Analytica incident stems from a personality-quiz app offered to Facebook users by a Cambridge University researcher. About 270,000 people downloaded the app, allowing the researcher to access data about both those individuals and their friends. The information was subsequently sold to Cambridge Analytica.

Facebook has said the researchers obtained users’ data with their consent and sold the information to Cambridge Analytica in violation of Facebook’s policies.

About the Authors
By David McLaughlin
See full bioRight Arrow Button Icon
By Daniel Stoller
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How the World Cup is a high-stakes stage for Big Tech’s AI push
NewslettersCIO Intelligence
How the World Cup is a high-stakes stage for Big Tech’s AI push
By John KellJune 10, 2026
2 hours ago
Anthropic accused of ‘secret sabotage’ as Claude Fable 5 silently limits capabilities for AI researchers and developers
AIAnthropic
Anthropic accused of ‘secret sabotage’ as Claude Fable 5 silently limits capabilities for AI researchers and developers
By Sharon GoldmanJune 10, 2026
3 hours ago
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI buildout
Future of WorkMeta
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI buildout
By Jacqueline MunisJune 10, 2026
3 hours ago
Xbox CEO Asha Sharma
SuccessCareers
Xbox’s CEO spent her early career taking out trash and selling coupon books—she says the secret to her rise was never obsessing over a dream career
By Preston ForeJune 10, 2026
6 hours ago
Boris Cherny, Head of Claude Code
SuccessHiring
The architect behind Claude Code reveals the three things Anthropic looks for in a good hire—and why people with low ego are a must
By Emma BurleighJune 10, 2026
6 hours ago
Trump sits at the Resolute Desk with his hands folded
AIImmigration
OpenAI and Nvidia CEOs didn’t flinch at Trump’s $100,000 H-1B visa fee, and now they’re paying up as their application numbers soar
By Jacqueline MunisJune 10, 2026
7 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
23 hours ago
Current price of silver as of Tuesday, June 9, 2026
Personal Finance
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.