The FTC never revealed that it originally planned to personally name Zuckerberg in the lawsuit, and the agency’s two Democrats at the time voted against the settlement in part because of the lack of personal accountability of the FTC. CEO.
The battle on several fronts: The lawsuits show that Facebook is yet to get past the Cambridge Analytica scandal, even as antitrust laws, alleged privacy breaches and other issues plague the company. The Senate Commerce Committee said last week it was opening an investigation into how the company has played down its own research into how Facebook’s photo-sharing app, Instagram is making mental health issues worse and body image of adolescents.
Newly public: The groups initially filed their complaints last year. They amended the complaints last month after receiving internal files about the council’s privacy discussions, which a federal judge ordered Facebook to provide.
How did that happen : In February 2019, the FTC sent Facebook attorneys a draft lawsuit that named both the company and Zuckerberg personally as defendants, shareholders said. The FTC also said in court that Facebook’s fine would have been closer to $ 106 million, but the company accepted the $ 5 billion penalty to avoid deposition from Zuckerberg or COO Sheryl Sandberg. and any liability for the CEO, according to the lawsuit.
“The board of directors has never provided serious control over Zuckerberg’s unhindered authority,” said a group of shareholders. “Instead, it empowered him, defended him, and paid billions of dollars into Facebook corporate coffers to make his problems go away.”
They also alleged that Zuckerberg and Sandberg both declined to be interviewed by PricewaterhouseCoopers, the company hired to audit Facebook’s privacy compliance under a 2012 FTC settlement, allowed to other managers from providing false statements about company practices and never provided the board with copies of PwC audits.
The accounting firm concluded that Facebook did not have enough controls in place to protect user data, according to the second complaint, and “that Facebook’s privacy controls were not functioning with sufficient effectiveness to provide reasonable assurance. to protect the confidentiality of the covered information “.
Facebook stays out of this: Facebook declined to comment on the costumes.