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Cambridge Analytica: Facebook 'being investigated by FTC' Cambridge Analytica: Facebook 'being investigated by FTC'
(about 2 hours later)
The US Federal Trade Commission is reported to be investigating Facebook after allegations that 50 million users' private information was misused by a political consultancy firm.The US Federal Trade Commission is reported to be investigating Facebook after allegations that 50 million users' private information was misused by a political consultancy firm.
Cambridge Analytica (CA), used by the Trump campaign in the 2016 US election, has been accused of taking the personal data unknown to users. Cambridge Analytica (CA), hired by the Trump campaign in the 2016 US election, has been accused of taking the personal data unknown to users.
CA head Alexander Nix has now been suspended by the company board.CA head Alexander Nix has now been suspended by the company board.
Facebook is due to brief congressional aides on Wednesday. The move came amid allegations the firm may have broken US electoral law.
Its stock has continued to slide, following Monday's steep decline. CA, which is based in London, denies any wrongdoing.
The British and European parliaments have called on Facebook boss Mark Zuckerberg to give evidence to them. Meanwhile, Facebook's stock has continued to slide, following a steep decline on Monday.
Cambridge Analytica, which is based in London, denies any wrongdoing. The British and European parliaments have called on Facebook boss Mark Zuckerberg to give evidence to them., and the social network is due to brief congressional aides on Wednesday.
The FTC, an independent agency of the US government, is tasked with protecting American consumers. Mr Zuckerberg did not attend a Facebook staff briefing on the crisis at its Californian headquarters on Tuesday, which was led by deputy general counsel Paul Grewal instead, the Daily Beast news site reports.
In a statement, Facebook said it was "outraged" that it had been "deceived" over the misuse of its data.
Why is the FTC getting involved?Why is the FTC getting involved?
The commission is investigating whether Facebook violated the terms of a 2011 decree regarding the social network's privacy protections, an unnamed source "familiar with the agency's thinking and not authorised to speak on the record" told the Washington Post newspaper. The FTC is an independent agency of the US government tasked with protecting American consumers.
It is investigating whether Facebook violated the terms of a 2011 decree regarding the social network's privacy protections, an unnamed source "familiar with the agency's thinking and not authorised to speak on the record" told the Washington Post newspaper.
This was confirmed by a Bloomberg news agency report, quoting an unnamed "person familiar with the matter".This was confirmed by a Bloomberg news agency report, quoting an unnamed "person familiar with the matter".
Under the 2011 decree, Facebook must notify users and obtain their permission before data about them is shared beyond the privacy settings they have established, the Washington Post says. Facebook was also subjected to 20 years of privacy checkups to ensure compliance.Under the 2011 decree, Facebook must notify users and obtain their permission before data about them is shared beyond the privacy settings they have established, the Washington Post says. Facebook was also subjected to 20 years of privacy checkups to ensure compliance.
Facebook confirmed on Tuesday that it was expecting to receive a letter from the FTC with questions about the data acquired by Cambridge Analytica. However, it also said it had had no indication of a formal investigation, Reuters news agency reports. Facebook confirmed on Tuesday that it was expecting to receive a letter from the FTC with questions about the data acquired by CA. However, it also said it had had no indication of a formal investigation, Reuters news agency reports.
"We remain strongly committed to protecting people's information," Facebook deputy chief privacy officer Rob Sherman said. "We appreciate the opportunity to answer questions the FTC may have.""We remain strongly committed to protecting people's information," Facebook deputy chief privacy officer Rob Sherman said. "We appreciate the opportunity to answer questions the FTC may have."
Facebook has already denied breaching the consent decree, telling the Washington Post: "We reject any suggestion of violation of the consent decree. We respected the privacy settings that people had in place. Privacy and data protections are fundamental to every decision we make."Facebook has already denied breaching the consent decree, telling the Washington Post: "We reject any suggestion of violation of the consent decree. We respected the privacy settings that people had in place. Privacy and data protections are fundamental to every decision we make."
What are the accusations against Cambridge Analytica? In its statement on Tuesday, it said: "The entire company is outraged we were deceived. We are committed to vigorously enforcing our policies to protect people's information and will take whatever steps are required to see that this happens."
Mr Zuckerberg and chief operating officer Sheryl Sandberg and their teams were, it added, "working around the clock to get all the facts and take the appropriate action moving forward, because they understand the seriousness of this issue".
What are the accusations against CA?
Christopher Wylie, who worked with the consultancy firm, alleges that it amassed large amounts of data through a personality quiz on Facebook called This is Your Digital Life.Christopher Wylie, who worked with the consultancy firm, alleges that it amassed large amounts of data through a personality quiz on Facebook called This is Your Digital Life.
He says that 270,000 people took the quiz but the data of some 50 million users, mainly in the US, was harvested without their explicit consent via their friend networks.He says that 270,000 people took the quiz but the data of some 50 million users, mainly in the US, was harvested without their explicit consent via their friend networks.
Mr Wylie says that data was sold to Cambridge Analytica, which then used it to psychologically profile people and deliver pro-Trump material to them, with a view to influencing the outcome of the 2016 election. Mr Wylie says that data was sold to CA, which then used it to psychologically profile people and deliver pro-Trump material to them, with a view to influencing the outcome of the 2016 election.
Cambridge Analytica insists it followed the correct procedures in obtaining and using data - but it was suspended from Facebook last week. CA insists it followed the correct procedures in obtaining and using data - but it was suspended from Facebook last week.
Did CA break US electoral law?
Channel 4 News, which conducted an undercover investigation into the consultancy firm, reports that it may have broken US electoral law, which prohibits co-ordination between an official election campaign and outside groups, or "Super PACs".
CA executives were filmed discussing a twin-track strategy to campaigning, putting out positive messages through Donald Trump's official presidential campaign, while attack ads were promoted by outside organisations.
Boasting about CA's work for the Trump campaign, Mr Nix told the undercover team: "We did all the research, all the data, all the analytics, all the targeting. We ran all the digital campaign, the television campaign and our data informed all the strategy."
At the same time, CA managing director Mark Turnbull appeared to confirm for the undercover team that CA had created the Defeat Crooked Hillary brand of attack ads, funded by a super-PAC called Make America Number 1.
The firm has denied wrongdoing, saying they operated according to a strict firewall and that they were transparent about their activities.
How can you protect your data on Facebook?How can you protect your data on Facebook?
There are a few things to be aware of if you want to restrict who has access to your data:There are a few things to be aware of if you want to restrict who has access to your data:
You can of course, simply leave Facebook, but the campaign group Privacy International warns that privacy concerns extend beyond the social network.You can of course, simply leave Facebook, but the campaign group Privacy International warns that privacy concerns extend beyond the social network.
"The current focus is on protecting your data being exploited by third parties, but your data is being exploited all the time," said a spokeswoman."The current focus is on protecting your data being exploited by third parties, but your data is being exploited all the time," said a spokeswoman.
"Many apps on your phone will have permission to access location data, your entire phone book and so on. It is just the tip of the iceberg.""Many apps on your phone will have permission to access location data, your entire phone book and so on. It is just the tip of the iceberg."