Facebook’s $100-Million Privacy and Security Disclosure Mistakes

The same day Facebook settled its historic $5-billion case with the FTC for violations of its 2012 Cease and Desist Order, it also agreed to pay the SEC $100 million to resolve charges that it misled investors about the risks it faced from Cambridge Analytica’s misuse of consumer data, a reminder that for regulated companies, there is an another dimension of cybersecurity and data privacy enforcement. “The SEC has been quite active in recent years on privacy and security issues, so it is imperative to pay attention to SEC obligations in connection with data protection disclosures,” Lisa Sotto, a partner at Hunton, told the Cybersecurity Law Report. We examine the settlement and its lessons. See “How Facebook’s $5-Billion FTC Settlement Is Shaping Compliance Expectations” (Aug. 7, 2019).

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