Which social media company was fined a record $5 billion by the FTC in 2019 for privacy violations? Facebook. The Federal Trade Commission announced the record penalty in July 2019 as part of a settlement with Facebook, Inc.
The case followed revelations involving Cambridge Analytica, a political consulting firm that obtained data associated with millions of Facebook users through a personality-quiz application. The FTC said Facebook had deceived users about their ability to control personal information and had violated a 2012 FTC consent order requiring stronger privacy practices.
The $5 billion payment was a civil penalty and settlement, not a criminal fine or a payment made directly to every affected user. The agreement also imposed privacy restrictions, required a modified corporate structure, and created additional oversight of Facebook’s data practices. At the time, it was the largest penalty the FTC had obtained against a technology company for privacy violations.
A common mix-up is confusing this case with penalties imposed on Google and YouTube, including a separate $170 million settlement over children’s privacy. Facebook later changed its corporate name to Meta, but the 2019 FTC action involved Facebook, Inc., making Facebook the expected quiz answer.