In what is believed to be the second-largest penalty ever, the Federal Trade Commission (FTC) has officially announced its USD 5 billion settlement with Facebook over its mishandling of users' data in Cambridge Analytica and other privacy breaches.
FTC alleges that Facebook failed to protect confidential data of its users from prying third parties, service ads, and lying to users that its facial recognition software was turned off by default, The Verge reports.
In addition to the massive fine, Facebook will also agree to a series of new restrictions such as conducting preview review of every new product and obtaining consent to create new facial recognition models. The social networking giant will also pay USD 100 million to the Securities and Exchange Commission for failing to disclose the breach to investors.