The FTC just introduced the main points of its settlement with Fb over years of privacy practices in violation of an earlier order. To say the settlement is favorable to Fb, even with the report $5 billion penalties, is an understatement; the company’s attorneys are most likely popping champagne right about now.
$5 billion might sound like a lot; however, in this context, it’s merely not a meaningful quantity. Leaving apart that Fb at this level probably makes that in a month, it simply does not correspond to the harm done or rewards reaped.
It’s highly likely that Fb’s “unjust enrichment,” made because of the forbidden consumer data collection wherein it engaged, is more than $5 billion. As Commissioner Rohit Chopra says in his dissenting statement, “breaking the legislation must be riskier than following it.” In different phrases, you shouldn’t be capable of stealing $100, then pay a fine of $50 to get off the hook.
“The truth that Fb’s inventory value increased with the disclosure of a potential $5 billion penalty could recommend that the market believes that a penalty at this level makes a violation profitable,” wrote Commissioner Rebecca Kelly Slaughter in her own dissent. Within the case of Google, which in spirit is just like this one, the settlement with the FTC amounted to a number of occasions the corporate’s unjust enrichment. As a result of the investigation didn’t look into it.