On Wednesday, the Federal Trade Commission (FTC) of the United States of America announced a $5 billion settlement with Facebook on Wednesday. The FTC has given reasons for why Facebook has to pay the fine.

According to the FTC, some of the reasons are:


1. Facebook signed an agreement with the commission back in 2012 but violated the agreement and was also using deceptive disclosures and settings that affected user privacy. Bad, very bad. This means that all the gist you have been having on Facebook, Instagram and Whatsapp, they may actually have access to it, so you have to now be very careful.

2. It must be annoying when you get advertisements on your phone that you can not understand, one of the reasons for that maybe that Facebook was misusing your phone number. The Federal Trade Commission claims that Facebook misused the phone numbers they had collected for account security purposes. They say that Facebook was targeting advertisements to these numbers.

3. The media has been calling for accountability from tech companies and for them to be careful about how they use personal information of users. Yet, Facebook allegedly deceived its users by telling them that if they did not want the facial recognition feature on the app then it would not be running even though they knew that was not true.

4. According to the Chairman of FTC, Joseph Simons, the company has to pay a fine so as to make sure there are no violations in the future. Also, so that it can affect Facebook’s privacy culture and decrease the likelihood of privacy violations.


5. They may have agreed to the fine so that the calls for more transparency and accountability from technology companies can reduce and they can go back to enjoying goodwill from their users. They also have to soothe people who believe that having this much power over as many people as Facebook has is dangerous.

Facebook CEO, Mark Zuckerberg has said that he realises how important it is for the company to restructure its privacy policy because they have the responsibility to protect people’s privacy. This may be the beginning of multiple changes to the privacy settings of Facebook and its subsidiaries, Instagram and Whatsapp.