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Judge Denies Meta's Bid to Force FTC into Court Over Privacy Settlement Revisions
According to Yahoo News, the US Federal Trade Commission (FTC) can proceed with revisions to Meta Platforms Inc.’s 2020 privacy settlement after a judge denied the social network's attempt to force the agency into court. US District Judge Timothy Kelly in Washington ruled on Monday that the federal court did not have jurisdiction over the FTC settlement with the parent company of Facebook and Instagram.
Meta shares dropped as much as 1.2% to $334.35 following the news. The company stated it was considering legal options and opposes the FTC's efforts to amend the agreement. Meta spokesperson Christopher Sgro said, “Today’s decision does not address the substance of the FTC’s allegations, which are without merit. We will continue to invest in our privacy program and remain focused on protecting people’s privacy.” The FTC declined to comment on the matter.
As part of the 2020 agreement, Meta consented to pay a $5 billion fine, the largest ever imposed for a privacy violation, and implement changes to its internal privacy checks. This included increased responsibility for the company's board and CEO Mark Zuckerberg to safeguard user data. In May, the FTC claimed Meta had repeatedly violated its privacy promises and initiated an internal proceeding to modify the 2020 settlement. The agency stated it would seek to alter the earlier settlement to prohibit Meta's use of facial recognition tools or monetizing children's data. Meta later petitioned Judge Kelly, who had approved part of the settlement before it was finalized, to prevent the agency from proceeding in-house and instead file a case in federal court.
Meta shares dropped as much as 1.2% to $334.35 following the news. The company stated it was considering legal options and opposes the FTC's efforts to amend the agreement. Meta spokesperson Christopher Sgro said, “Today’s decision does not address the substance of the FTC’s allegations, which are without merit. We will continue to invest in our privacy program and remain focused on protecting people’s privacy.” The FTC declined to comment on the matter.
As part of the 2020 agreement, Meta consented to pay a $5 billion fine, the largest ever imposed for a privacy violation, and implement changes to its internal privacy checks. This included increased responsibility for the company's board and CEO Mark Zuckerberg to safeguard user data. In May, the FTC claimed Meta had repeatedly violated its privacy promises and initiated an internal proceeding to modify the 2020 settlement. The agency stated it would seek to alter the earlier settlement to prohibit Meta's use of facial recognition tools or monetizing children's data. Meta later petitioned Judge Kelly, who had approved part of the settlement before it was finalized, to prevent the agency from proceeding in-house and instead file a case in federal court.
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