📺 Stream EntrepreneurTV for Free 📺

FTC Says Facebook Violated 2020 Privacy Order, Proposes More Protections for Teens and Children This is the third instance wherein the FTC says Facebook allegedly failed to protect user privacy.

By Madeline Garfinkle Edited by Jessica Thomas

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Anadolu Agency | Getty Images

The Federal Trade Commission (FTC) proposed changes to its 2020 privacy order with Facebook after the company allegedly failed to comply with it. The FTC stated this is the third instance it has taken action against the company for failing to fully protect users' privacy.

"Facebook has repeatedly violated its privacy promises," Samuel Levine, director of the FTC's bureau of consumer protection, said in a statement. "The company's recklessness has put young users at risk, and Facebook needs to answer for its failures."

The FTC says that Facebook (whose parent company was renamed Meta in 2021) misled parents about their ability to control their children's communications in the Messenger Kids app — which launched in 2017 — and that in some cases children were able to communicate with contacts not approved by parents through group chats and group video calls.

Related: Facebook May Owe You Money. Here's How to Find Out and Join the Class Action Lawsuit

The FTC's proposed changes would prohibit Meta from profiting on data from users under 18, pause the launch of any new products or services until there is confirmation that the company is in full compliance with the order, and require it to disclose and obtain user consent for any use of facial recognition technology.

In response to the FTC order, Meta called the move a "political stunt" in a press release titled "Upholding Our Commitment to Protecting Your Privacy: What the FTC Gets Wrong."

"It's a clear attempt to usurp the authority of Congress to set industry-wide standards and instead single out one American company while allowing Chinese companies like TikTok to operate without constraint on American soil," the company wrote in the post.

The company went on to state that the latest order "ignores" key facts, such as the fact that the coding error that allowed children to communicate with unauthorized contacts was disclosed to the FTC in 2019, and the company has since taken action to enhance safety and prevent such errors.

"Privacy has been and remains our priority," Meta added in the release. "We work with the FTC, not only in the interest of being extremely transparent with them but also to ensure that we're engaging with them regularly as we work to protect people's privacy and constantly improve our program."

Related: Meta Employees Interrogate Mark Zuckerberg in Town Hall Meeting

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

Business News

These Are the 10 Most Profitable Cities for Airbnb Hosts, According to a New Report

Here's where Airbnb property owners and hosts are making the most money.

Side Hustle

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.

Productivity

Want to Be More Productive? Here's How Google Executives Structure Their Schedules

These five tactics from inside Google will help you focus and protect your time.

Starting a Business

This Couple Turned Their Startup Into a $150 Million Food Delivery Company. Here's What They Did Early On to Make It Happen.

Selling only online to your customers has many perks. But the founders of Little Spoon want you to know four things if you want to see accelerated growth.