FTC Investigating Facebook On User Privacy Concerns: Report

The Federal Trade Commission is investigating whether Facebook Inc. FB intentionally withheld information regarding the health effects from its products.

What Happened: The FTC is trying to determine if Facebook violated its record-breaking $5 billion settlement with the agency in 2019, according to a Wall Street Journal report citing information from unnamed "people familiar with the matter." That settlement stemmed from accusations that the social media giant violated a 2012 FTC order by deceiving users about their ability to control the privacy of their personal information.

The probe follows information released by former Facebook product manager Frances Haugen that internal research affirmed the company’s algorithms created user discord and that its Instagram app was harmful to many users, particularly teenage girls.

The FTC did not comment on the Journal’s report and Facebook issued a statement saying it was “always ready to answer regulators’ questions and will continue to cooperate with government inquiries.”

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What Else Happened: Separate from the FTC investigation, the Securities and Exchange Commission has been communicating with Haugen’s attorneys, according to an unidentified lawyer on her legal team.

The FTC has also engaged in communications with Haugen’s attorneys — but unlike the SEC, the FTC doesn't have an official program to protect corporate whistleblowers. To date, Haugen hasn't faced any legal retribution from her former employer and Facebook has insisted that Haugen's disclosures were misinterpreted by the media.

Photo: Mohammad Hassen / Pixabay.