Meta Platforms Inc. is taking legal action against the Federal Trade Commission (FTC) in an attempt to prevent the agency proceedings to revise its 2020 privacy settlement. According to Meta, the settlement was approved by a federal court, and any changes or modifications should be made exclusively by the court rather than the FTC.
The settlement, which Meta agreed to in 2020, included a $5 billion penalty and changes to internal privacy checks. However, on May 3, the FTC accused Meta of repeatedly violating privacy promises and started an internal proceeding to revise the settlement. The agency proposes adding provisions such as prohibiting Meta's use of facial recognition tools and the monetization of children's data.
Meta argues that these changes go beyond what the FTC could seek in federal court and that the agency is attempting to make the revisions internally as a result. The company claims that the consent order clearly stipulates that only the federal court can enforce or modify it and that the FTC is obliged to adhere to its terms.
Meta spokesperson Dina El-Kassaby Luce said in a statement that "the consent order is clear that only the federal court, not the FTC, can enforce or modify it, and the FTC is bound to comply with its terms."
The 2020 settlement, approved by Judge Timothy Kelly, stated that Facebook had "systemic oversight failures" and insufficient accountability, and while Kelly approved the settlement as "reasonable," he suggests that different remedies could have been implemented with a trial.
However, Meta argues that the changes proposed by the FTC in the internal proceeding go beyond what a court could order the company to do, indicating that the agency is overreaching its authority. The proposed changes include a ban on the use of facial recognition technology, which is still an emerging technology, and a ban on monetizing children's data, which is already restricted under laws such as the Children's Online Privacy Protection Act (COPPA).
Meta's filing seeking an injunction to stop the commission proceeding argues that "the FTC seeks to substitute itself for this court by taking ‘further enforcement action’ and ‘modifying’" the settlement. The company alleges that the FTC is attempting to modify the settlement in-house, which exceeds the scope of the initial settlement agreement and the FTC's authority.
While the legal battles between Meta and the FTC continue, the outcome could have far-reaching implications for the regulation of tech companies and the enforcement of privacy laws. The case highlights the tension between federal courts and regulatory agencies when it comes to regulating big tech, and the need for clear lines of authority and accountability for the protection of user data.