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Nicole Ferraro

FTC Forcing Facebook to Change Its Ways

Written by Nicole Ferraro
11/11/2011 39 comments
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In a recent conversation with Internet Evolution, David Vladeck, director of the Bureau of Consumer Protection at the Federal Trade Commission, said that the FTC's settlement with Google over Google Buzz in March should stand as an example for other companies fiddling with their privacy policies. The message? If you make fundamental changes to your privacy policy without informing users and getting their consent, you're going to be in trouble with the government.

See David Vladeck speaking about privacy policies below:

With that in mind, we welcome the FTC's latest victim: Facebook.

The Wall Street Journal reports that Facebook is close to settling with the FTC over charges that it wasn't forthcoming with users about how it was using their information. According to the report, if the FTC approves the pact set forth by Facebook, the company will have to "obtain users' consent before making 'material retroactive changes' to its privacy policies."

So if Facebook is going to make a change that alters what members originally agreed to when signing up, it will have to obtain user agreement first. This likely means that many of Facebook's "features" that were previoulsy "opt-out" only will now be "opt-in."

Though this sounds reasonable, any Facebook user knows it's also out of step with how Facebook has typically operated. In the past, it was more like, "Uh, did you not want that information you'd locked down with the strictest privacy settings exposed to the entire Web through Google search? Oh, well!"

It's that lax attitude toward sharing users' information that the FTC is fighting. Privacy groups filed a complaint with the commission after Facebook enacted a change in December 2009 that suddenly made users' information, including profile photos, city/state, gender, Friends, and interests, public by default.

Under the terms of this agreement, says the WSJ, changes like that won't be allowed anymore without user consent, and Facebook (like Google) will have to submit to independent privacy audits for 20 years.

Here's where we take a little break to laugh: Haaaaahahahahhahahahahahahahahaha!

OK. That's done. Back to business.

With the terms still being finalized, it's worth considering what the implications of this change will mean for Facebook and other Web service operators, evil masterminds, etc.

For starters, forcing Facebook to be candid with changes to its policies (which, whether Zuck admits it or not, are all made for the company's financial gain), and getting users to agree to such changes before they're put in place, may determine whether the company can continue to thrive financially. Does Facebook still have a working business model when it can no longer open a back door and let out all its users' data? We shall see.

Second, by going after Google and Facebook, the government has made it clear that it is invested in involving itself in all matters digital. This could result in us seeing a major change to the way the Web 2.0 world operates. Social startups and other companies making their millions (er, hundreds?) off user data should heed these settlements with Facebook and Google as warnings.

In other words, the message is as follows: Nothing is constant in the digital world. As technology evolves, the rules evolve, too, and the FTC's actions strongly suggest that the age of robbing users of their "privacy" -- whatever that means in this era of relentless public declarations -- is coming to an end.

— Nicole Ferraro Follow me on TwitterVisit my LinkedIn pageFriend me on Facebook, Executive Editor, Internet Evolution

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Mr. Roques
Researcher
Wednesday December 7, 2011 4:39:00 PM
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I specially liked this one:

"* required to obtain consumers' affirmative express consent before enacting changes that override their privacy preferences;"

Will definitely stop FB from doing what they are doing now. Although, I'm sure they can hire a few smart lawyers to bypass it. I'm sure it has happened before, no?

Mr. Roques
Researcher
Wednesday December 7, 2011 4:37:08 PM
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But could the FTC regulate content that is not stored in the US? If they move all the servers to Greenland, could the FTC still enforce those laws?

Nicole Ferraro
IQ Crew
Tuesday November 29, 2011 2:14:35 PM
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Looks like the FTC and Facebook have officially settled. You can read the FTC's statement in full here, but here are the main points:

    Specifically, under the proposed settlement, Facebook is:

    * barred from making misrepresentations about the privacy or security of consumers' personal information;

    * required to obtain consumers' affirmative express consent before enacting changes that override their privacy preferences;

    * required to prevent anyone from accessing a user's material no more than 30 days after the user has deleted his or her account;

    * required to establish and maintain a comprehensive privacy program designed to address privacy risks associated with the development and management of new and existing products and services, and to protect the privacy and confidentiality of consumers' information; and

    * required, within 180 days, and every two years after that for the next 20 years, to obtain independent, third-party audits certifying that it has a privacy program in place that meets or exceeds the requirements of the FTC order, and to ensure that the privacy of consumers' information is protected.

Mike Acker
Rank: Cyborg
Wednesday November 23, 2011 7:35:57 PM
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" their naivete was the culprit"

ROF,LMAO

I suppose they would claim that

 

pcharles
IQ Crew
Wednesday November 23, 2011 6:55:11 PM
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Well, I don't know if the developers at the time knew of the potential for malware, viruses, etc. So if the client installed at the time with that intended purpose, then their naivete was the culprit.

Mike Acker
Rank: Cyborg
Wednesday November 23, 2011 2:18:58 PM
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#pc : you're right.

I'm going to load that box with Linux; there is no use to fool with XP any further

think about the implication of your post though: if an xp was sold with an internet client inluded: it was not suitable for the purpose for which it was sold.

pcharles
IQ Crew
Wednesday November 23, 2011 12:42:10 PM
no ratings

Yes it will. The problem is that even if you wipe it, once they get it back, they're going to browse the same sites or click the virus links that are sent from their friends' Facebook message.
I call it the never-ending cycle of XP. At least in Win7, I can set the user as non-admin & it actually helps with the malware a bit. So far, I haven't had to wipe a Win7 box yet (I hope that doesn't end now since saying that..).

Mike Acker
Rank: Cyborg
Wednesday November 23, 2011 11:40:03 AM
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#pc ="Isn't some body there to put an end to it? Now I find the Federal Trade Commission is doing that job pretty well."

  • EPIC
  • EFF
  • FTC
  • HIPPA
  • EU

There is change in the wind I think, and a good change too

Perhaps the trouble that comes from the book of fools will help people realize the philosophy on which that device is based is dangerous

my daughter loaned her XP box to her sister.  yesterday they brought it back to me stating that "it doesn't run".

on checking, when you connect it to the net it tries to load about 50 web pages... bogs down and thrashes,-- effectively doing nothing.

I warned them: most likely: it's a dust off.  I'm waiting to see if they want me to try to recover any data; any such effort is potentially dangerous.

my daughters have been damaged; the perps are liable for the civil damages under tort law

but there is no way to assign liability

my daughters have to learn the net is like a dark alley with broken glass, nails, and thugs attending to the un-wary adventurer

is an xp computer worth salvaging?

obviously: no

but maybe for my daughters

but the same thing will just happen again, won't it?

 

pcharles
IQ Crew
Wednesday November 23, 2011 10:53:15 AM
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The most popular social networking site, Facebook, must be loyal to its users, as the users have put lots of trust in them by putting their information on Facebook. I am aware of many privacy allegations that are made against Facebook but I always wondered: Isn't some body there to put an end to it? Now I find the Federal Trade Commission is doing that job pretty well.

Mike Acker
Rank: Cyborg
Wednesday November 16, 2011 8:12:58 PM
no ratings

Kim: there will always be lots of good people willing to pay an ISP someplace to provide a web server so they can put up their site, -- so they can present whatever they want to present

this is already the case, today.  and a very good thing: we have broken the monopoly the old media held over press, radio, and tv.

my guess is: entertainment is next, and then academia

 

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