Barely catching its breath in the tumultuous digital privacy battles, Meta Platforms - the powerhouse behind Facebook, Instagram, and WhatsApp - met a significant setback this Monday. U.S. District Court Judge Timothy Kelly turned the tables, favoring the U.S. Federal Trade Commission (FTC)'s claims regarding Meta's ad revenue from young users.
Judge Kelly Defies Meta in Favor of FTC
Judge Timothy Kelly from the U.S. District Court for the District of Columbia rejected Meta's plea for court intervention in its ongoing spat with the FTC. The disagreement surfaced in May when the FTC accused Meta of misleading parents about their authority over their children's interaction on the Messenger Kids app, among other things.
FTC Seeks Amendment in Previous Settlement
Calling for a reevaluation of a 2019 settlement requiring Facebook's $5B payout, the FTC now plans to stop Facebook from monetizing data pulled from underage users. The desired changes encompass Meta's virtual reality avenues and propose further restrictions on utilizing facial recognition tech.
Meta's Heavy Reliance on Personal Data for Revenue
What does Meta's revenue cabinet look like? A whopping 98% plus originates from digital advertisements hinged on personal data. The court ruling could pose significant operational challenges as Meta pushes to divert young users towards its platform against the backdrop of rising app star TikTok. A Pew Research Center report from early 2023 found Instagram in the hands of a staggering 62% of teenagers aged 13-17, while WhatsApp was the chosen platform for 17%.
FTC's Stand on Past Settlement Amendments
Who holds the power to amend previous settlements? The FTC asserts it's their sole jurisdiction, pushing the district court into spectatorship. Notably, any commission decision can seek appeal in respective appeals courts.
Meta Responds to FTC's Accusations
In a response to the FTC's allegations of child privacy violations, Meta invalidated the claims, calling them 'without merit.' Its spokesperson stated, "We are considering our legal options in light of the Court's ruling and will continue to vigorously fight the FTC's unlawful attempt unilaterally to rewrite our agreement." The FTC, however, refrained from commenting on the matter.
FTC and Facebook's History of Privacy Violation Settlements
Interestingly, FTC and Facebook's history dates back to two separate privacy violation settlements. The first one surfaced in 2012, while the second resulted in a record $5B fine on Facebook in 2019. The latter aimed to resolve allegations of Facebook breaching the 2012 agreement by misleading users about their control over personal information, and the order became official in 2020.
In 2020, the FTC approached a federal court, demanding Facebook to divest Instagram and WhatsApp - bought for $1B and $19B, respectively - a case that remains pending trial.
Protect Your Digital Privacy with Legal Assistance
Now more than ever, people must know their digital rights. Consider feeling your online privacy has been breached. In that case, we strongly encourage seeking advice and assistance from legal professionals who can walk you through viable options and help you fight for your rights. Protect your digital life today and always.
