Facebook Could Be Fined $2 Trillion By The FTC, That’s Trillion With A ‘T’

Facebook is now under official investigation by the Federal Trade Commission following the discovery that it had been collecting users’ SMS and call data without making it explicitly clear that it was doing so. Users were simply shocked when reports of the practice started circulating social media, which only adds to the social network’s woes. If it’s found guilty, it could be looking at a substantial fine.

Rumors of the FTC’s investigation actually start less than a week ago, with The Washington Post noting that it was likely prompted by the whole Cambridge Analytica debacle. This was before news of the SMS and call data collection broke out. With that particular development piling on Facebook’s troubles, it seems the FTC has finally decided to make its move.

In a statement, the acting director of the Bureau of Consumer Protection at the FTC, Tom Pahl revealed that an official investigation into these matters is underway. A huge part of the investigation would be to look into the depth of the privacy breach that Facebook committed, which given the evidence stacked against the social network, is bound to look like an abyss.

“The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act,” the statement reads.

“Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices.”

As Futurism notes, Facebook also has a lot riding on its absolution from this investigation. It has a standing agreement with the FTC that was signed back in 2011, indicating that the social network would not sell user data with explicit permission.

Since this seems to be the case with the 50 million user data that Facebook gave to Cambridge Analytica, it could face a fine of up to $40,000 for each violation. Anyone doing the math would see that this amounts to a $2 trillion penalty.