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The Federal Trade Commission announced a billion settlement with Facebook on Wednesday, resolving a sweeping investigation by regulators into how the company lost control over massive troves of personal data and mishandled its communications with users. It is the largest fine in FTC history — and yet still only about a month's worth of revenue for Facebook.The deal comes amid growing calls in Washington for greater transparency and accountability for technology companies, whose power over social movements as well as personal information has increasingly come to be seen as dangerous by politicians, users, and even one of Facebook's co-founders.Facebook agreed to the deal following years of damaging admissions about the company's privacy practices, such as the inadvertent exposure of up to 87 million users' information to the political analysis firm Cambridge Analytica.The settlement resolves a formal complaint by the FTC alleging that Facebook "used deceptive disclosures and settings" that eroded user privacy, violating a prior agreement Facebook signed with the commission in 2012. Facebook also broke the law, the FTC alleged, by misusing phone numbers obtained for account security purposes to also target advertisements to its users. And the company allegedly deceived "tens of millions of users" by implying that a facial recognition feature on the service had not been enabled by default, when in fact it had."The magnitude of the billion penalty and sweeping conduct relief are unprecedented in the history of the FTC," said Chairman Joseph Simons in a statement. "The relief is designed not only to punish future violations but, more importantly, to change Facebook's entire privacy culture to decrease the likelihood of continued violations."Facebook did not immediately respond to a request for comment.The FTC settlement — which also covers Facebook subsidiaries Instagram and WhatsApp — could set the tone for a wave of further action by policymakers worldwide as they seek to rein in the most powerful players in Silicon Valley.The billion fine is nearly 30 times the FTC's largest-ever civil penalty to date — 8 million, which was levied on Dish Network in 2017 — reflecting the tremendous scale of Facebook's operations, as well as the enormity of its self-admitted mistakes.In addition to the record civil penalty, Facebook also agreed to accept greater oversight of its privacy practices. Under the FTC deal, Facebook's board will form a privacy oversight committee made up of independent members who cannot be fired by CEO Mark Zuckerberg alone. That committee will be charged with appointing still other officials who must periodically and truthfully certify that Facebook is complying with the FTC agreement, or risk being held personally liable. Zuckerberg will also be required to make those same certifications, the FTC said."False certifications would subject Mr. Zuckerberg and the [designated compliance officers] to personal liability, including civil and criminal penalties," Simons said in a statement written jointly with the Commission's two other Republican members, Christine Wilson and Noah Phillips.The FTC also required that regular third-party assessments of Facebook's privacy practices not rely on company materials but instead on the auditor's own fact-finding.The FTC voted 3-2 to approve the settlement, with the agency's two Democrats dissenting because they believed the measure did not go far enough. In dissents, Commissioners Rohit Chopra and Rebecca Slaughter said they believed the fines were far too small, and that the FTC wrongfully gave Zuckerberg and Facebook COO Sheryl Sandberg a pass."Failing to hold them accountable only encourages other officers to be similarly neglectful in discharging their legal obligations," wrote Chopra. "In my view, it is appropriate to charge officers and directors personally when there is reason to believe that they have meaningfully participated in unlawful conduct, or negligently turned a blind eye toward their subordinates doing the same."Other prominent tech critics, including Democratic Sen. Richard Blumenthal of Connecticut and Missouri Republican Sen. Josh Hawley, have said a billion fine would be "a bargain" for Facebook. In an earnings report earlier this year, Facebook said it was setting aside billion to help cover expenses related to the expected penalty. It reported quarterly revenues of billion at the time and its stock rose after it announced the charge, signaling investors were relieved by the probable outcome.For more than a year, Facebook — once the darling of policymakers and a celebrated example of American ingenuity — has lurched from crisis to crisis.This past October, for example, Facebook disclosed that hackers had compromised tens of millions of accounts by exploiting a series of software flaws, culminating in their ability to impersonate users and take over their profiles.The following month, Facebook 4985
The catastrophic fire at the Notre Dame Cathedral could have been caused by a burning cigarette or an electrical malfunction, French prosecutors said Wednesday.A preliminary investigation into the April fire, which devastated large parts of the 850-year-old church, found no signs that the blaze was started deliberately, Paris prosecutor Remy Heitz said in a statement.Investigators carried out a hundred witness hearings during the preliminary investigation, which concluded on Wednesday, Heitz said.Prosecutors are now looking into the possibility of negligence and said they were opening a judicial investigation."If certain failings -- which may explain the scale of the fire -- have been brought to light, the investigations carried out to this date have not been able to determine the causes of the fire," Heitz said.Heitz said the judicial investigation would be carried out "on the grounds of involuntary damage by fire due to a manifestly deliberate breach of a duty of care or safety imposed by law or regulation, which occurred under conditions likely to expose persons to bodily harm." 1110
The high school basketball star whose refusal to get a chickenpox vaccine got him banned from school and the team came down with the illness last week, recovered and is back in class, his attorney told Scripps affiliate WCPO on Wednesday.Jerome Kunkel’s attorney, Chris Wiest, said the Northern Kentucky Health Department lifted the ban on Kunkel and their case is now in appeals court. Kunkel plans to seek a jury trial and ask for monetary damages, Wiest said.Kunkel, a senior at Assumption Academy in Walton, 524
The Dow Jones Industrial Average closed down more than 800 points on Tuesday — a day after the Dow dropped more than 1,000 points in the biggest single-day loss of 2020.The Dow finished Tuesday down 878 points, marking the fourth-largest one-day drop in the market's history. Fears about the worldwide spread of COVID-19, better known as coronavirus, have prompted a slowdown in global markets. The CDC compounded fears of the spread of the disease Tuesday when it said that Americans need to prepare for "significant disruptions" to their daily lives."Ultimately we expect we will see community spread in this country," CDC Director of Immunization and Respiratory Diseases Dr. Nancy Messonier. said. "It’s not so much a question of if this will happen anymore, but rather more a question of exactly when this will happen and how many people in this country will have severe illness."The two-day drop has wiped out all year-to-date gains the Dow has made since the new year began.The loss also comes hours after President Donald Trump attempted to assuage fears of a global economic slowdown. Speaking at a press conference in India, Trump claimed that his administration would prevent the spread of the virus. "I think it's going to be under control and it's going to work out fine," Trump said. 1309
The "Fantastic Adventures" YouTube channel has racked up more than 250 million views, with its adorable cast of seven adopted children, silly topics and charmingly low-fi visual effects.Behind the scenes, though, the children told a different story. A welfare check last week found the home was a den of abuse in which their mother would withhold food and water for days at a time, pepper-spray them, force them to take ice baths and lock them in a barren closet, according to a statement of probable cause in Maricopa, Arizona."They stated they are disciplined in the manners above if they do not recall their lines or do not participate (in the videos) as they are directed to," the probable cause statement said."They further stated this is one of the reasons their mom took them out of school so they can keep filming their series and they mentioned they have not been in school for years."Police on Friday arrested their mother, Machelle Hobson, 48, on two counts of molestation of a child, seven counts of child abuse, five counts of child neglect and five counts of unlawful imprisonment. The Pinal County Sheriff's Office mistakenly listed her last name as Hackney but later provided her correct surname.Hobson's adult sons, Logan and Ryan Hackney, also were arrested Friday. They face seven charges each. They are accused of failing to report the abuse of a minor.Hobson's attorney, Richard Scherb, told CNN the state's case "is without merit."Her bond is set at 0,000 and her adult sons, Ryan and Logan Hackney, have been released from jail on their own recognizance, said Christy Wilcox, spokeswoman for the Pinal County Attorney.In the police report, Hobson said the closet in her room is never used for punishment, and she denied the accusations involving pepper spray and ice baths. She said the only forms of punishment she uses are having to stand in the corner, spankings and being grounded, the statement said.Ryan Hackney invoked his Miranda rights, but Logan Hackney spoke to police and said the children were locked in the closet, pepper-sprayed and forced to take ice baths, the statement said.What a welfare check foundHobson's YouTube channel posts a new video about once a week and boasts nearly 800,000 subscribers. With titles like "The FLOOR IS LAVA!" and "Escape The Babysitter!" each of the 10- to 15-minute episodes features the family of cute children in lightsaber battles, turning into superheroes or attempting to steal cookies.The statement of probable cause details a visit that welfare officers made to the home on March 13 after getting a tip from an adult daughter, who said one of the children said they were being abused.During the welfare check, one child was found in an unlocked closet, which has a locking mechanism, wearing only a pull-up diaper, the statement said, adding that the other six children appeared to be malnourished. It said they had pale complexions, dark rings under their eyes, were underweight and they said they were thirsty and hungry.According to the probable cause statement, one of the children drank three 16-ounce bottles of water within 20 minutes and said he had been pepper sprayed numerous times as punishment by his mother. Another child said she was extremely hungry and was given a bag of chips on the scene. However, she was afraid to eat the chips because she didn't want her mother to smell them on her breath, the statement said.The Department of Child Safety then removed the seven children from their mother's custody.A search of the home found two cans of pepper spray in the mother's room, and the closet in her bedroom had a deadbolt lock and a bare tile floor, the statement said.In follow-up interviews, one child told of how they were kept locked in a closet for days at a time with no food, water or restroom. They also were pepper sprayed all over their face and body, spanked, forced to take ice baths, and forced to stand in the corner with their arms raised for several hours at a time, the statement said."I either get beat with a hanger or belt" "or a brush," one child said, "or get pepper sprayed from head to toe," according to the statement.The child also said his mother would pinch the tip of his penis with her fingernails until it would bleed. Another child said she had been pepper sprayed on her vagina and recalled being in pain for four to five days, the statement said.YouTube confirmed the channel was demonetized once the company was made aware of the arrest. 4487