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1 1 (August 8, 2019)

handle is hein.crs/govbbvz0001 and id is 1 raw text is: r g Facebook's $5 Billion Privacy Settlement with the Federal Trade Commission August 8, 2019 On July 24, 2019, the Federal Trade Commission (FTC) announce d a record-breaking settlement with the social media company Facebook. The settlemeit order (2019 Order) is still subject to court approval. But if it is approved, Facebook will be required to pay a $5 billion civil penalty and make several changes to its privacy practices and corporate management structure. In exchange for this relief, the FTC has agreed to resolve any allegations that Facebook or its officers violated an earlier 20 12 setlement agreement (the 2012 Order) or otherwise violated the Federal Trade Commission Act (FTC Act). The FTC has described the 2019 Order as imposing one of the largest penalties ever assessed by the U.S. government for any violation, stating that the penalty is almost 20 times greater than the largest privacy or data security penalty ever imposed worldwide. The Commission did not unanimously adopt the 2019 Order, however. Two of the five FTC commissioners dissented, expressing concerns about the order's ability to effectively constrain Facebook's privacy practices. This Sidebar summarizes the 2019 Order and discusses its potential implications for Congress. First, the Sidebar provides background by explaining the legal framework governing the FTC's privacy enforcement and by discussing the 2012 Order that Facebook was alleged to have violated as the basis for the 2019 Order. Next, the Sidebar surveys the 2019 Order, including its allegations and the new obligations it would impose on Facebook. Lastly, the Sidebar discusses some potential considerations for Congress. Federal Privacy Law and the FTC As discussed in more detail in t rpr, there is no single comprehensive federal law governing companies' data privacy practices. Instead, there are a variety of laws that are primarily directed at particular categories of entities, requiring these entities to adopt specific privacy practices. For instance, under the Chldren's Online Privacy Protection Act (COPPA), operators of online services directed at children (or online operators who knowingly collect children's information) must obtain parental consent before collecting, using, or disclosing such information. Other privacy laws include (but are not limited to) the Gramm-Leach Bliley Act (GLBA), which applies to financial institutions, and the Health Insurance Portability and Accountability Act (HIPAA), which applies to certain healthcare entities. Congressional Research Service https://crsreports.congress.gov LSB10338 CRS Legal Sidebar Prepared for Members and C om m ittees ot C onr ess -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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