Meta Platforms Inc., the parent company of Facebook (NASDAQ:META), has rejected a move by the U.S. Federal Trade Commission (FTC) to change its 2020 privacy agreement. The tech giant said in a recent filing that it voluntarily reported two technical issues in its Messenger Kids app to the FTC in July 2019. Meta emphasized its commitment to privacy by highlighting its $5.5 billion investment in its privacy program and related initiatives.
The FTC, which did not respond to a request for comment, has expressed its intention to strengthen the terms of the 2020 settlement. The agreement includes provisions to prevent the monetization of minors’ data and impose additional restrictions on the use of facial recognition technology. The agency has criticized Meta for allegedly providing misleading information to parents about protecting children’s privacy.
In a recent development, a U.S. appeals court ruled in March that Meta could not block the FTC from continuing its investigation into its Facebook unit’s privacy practices. The decision came despite Meta’s argument that the company had already paid a substantial $5 billion fine and agreed to a series of privacy protections.
Meta, which has denied misleading parents about privacy risks, filed legal action against the FTC in November. The lawsuit challenges the FTC’s constitutional authority, calling into question its dual role as both an investigative and adjudicatory entity.
Source: Investing
