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Proposed Settlement in FTC Privacy Complaint Against Facebook

Proposed Settlement in FTC Privacy Complaint Against Facebook

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Published by FindLaw
The Federal Trade Commission has proposed a settlement with Facebook over the FTC's complaint accusing Facebook of privacy violations. The settlement requires Facebook to, among other things, refrain from misrepresenting its privacy practices, notify users when data will be shared with third parties, establish a privacy program and generate assessments of the privacy program's effectiveness.
The Federal Trade Commission has proposed a settlement with Facebook over the FTC's complaint accusing Facebook of privacy violations. The settlement requires Facebook to, among other things, refrain from misrepresenting its privacy practices, notify users when data will be shared with third parties, establish a privacy program and generate assessments of the privacy program's effectiveness.

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Published by: FindLaw on Dec 01, 2011
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12/01/2011

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 UNITED STATES OF AMERICAFEDERAL TRADE COMMISSION
____________________________________)
 In the Matter of 
)) FILE NO 092 3184)FACEBOOK, INC., ) AGREEMENT CONTAININGa corporation. ) CONSENT ORDER____________________________________)
The Federal Trade Commission has conducted an investigation of certain acts andpractices of Facebook, Inc. (“Facebook”). Proposed Respondent, having been represented bycounsel, is willing to enter into an agreement containing a consent order resolving the allegationscontained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED
by and between Facebook, its duly authorized officers, andcounsel for the Federal Trade Commission that:
 
1. Proposed Respondent is a Delaware corporation with its principal office or place of business at 1601 S. California Avenue, Palo Alto, California, 94304.2. Proposed Respondent admits all the jurisdictional facts set forth in the draft complaint.3. Proposed Respondent waives:A. any further procedural steps;B. the requirement that the Commission’s decision contain a statement of findings of fact and conclusions of law; andC. all rights to seek judicial review or otherwise to challenge or contest the validityof the order entered pursuant to this agreement.4. This agreement shall not become part of the public record of the proceeding unless anduntil it is accepted by the Commission. If this agreement is accepted by the Commission,it, together with the draft complaint, will be placed on the public record for a period of thirty (30) days and information about it publicly released. The Commission thereaftermay either withdraw its acceptance of this agreement and so notify proposed Respondent,in which event it will take such action as it may consider appropriate, or issue and serveits complaint (in such form as the circumstances may require) and decision in dispositionof the proceeding.
 
 5. This agreement is for settlement purposes only and does not constitute an admission byproposed Respondent that the law has been violated as alleged in the draft complaint, orthat the facts as alleged in the draft complaint, other than the jurisdictional facts, are true.Proposed Respondent expressly denies the allegations set forth in the complaint, exceptfor the jurisdictional facts.6. This agreement contemplates that, if it is accepted by the Commission, and if suchacceptance is not subsequently withdrawn by the Commission pursuant to the provisionsof Section 2.34 of the Commission’s Rules, the Commission may, without further noticeto proposed Respondent, (1) issue its complaint corresponding in form and substancewith the attached draft complaint and its decision containing the following order indisposition of the proceeding, and (2) make information about it public. When soentered, the order shall have the same force and effect and may be altered, modified, orset aside in the same manner and within the same time provided by statute for otherorders. The order shall become final upon service. Delivery of the complaint and thedecision and order to proposed Respondent’s address as stated in this agreement by anymeans specified in Section 4.4(a) of the Commission’s Rules shall constitute service.Proposed Respondent waives any right it may have to any other means of service. Thecomplaint may be used in construing the terms of the order, and no agreement,understanding, representation, or interpretation not contained in the order or theagreement may be used to vary or contradict the terms of the order.7. Proposed Respondent has read the draft complaint and consent order. ProposedRespondent understands that it may be liable for civil penalties in the amount provided bylaw and other appropriate relief for each violation of the order after it becomes final.
 ORDERDEFINITIONS
 For purposes of this order, the following definitions shall apply:1. Unless otherwise specified, “Respondent” shall mean Facebook, its successors andassigns. For purposes of Parts I, II, and III of this order, “Respondent” shall also meanFacebook acting directly, or through any corporation, subsidiary, division, website, orother device.2. “Commerce” shall be defined as it is defined in Section 4 of the Federal TradeCommission Act, 15 U.S.C. § 44.3. “Clear(ly) and prominent(ly)” shall mean:A. in textual communications (
e.g.
, printed publications or words displayed on thescreen of a computer or mobile device), the required disclosures are of a type,size, and location sufficiently noticeable for an ordinary consumer to read and
 
 comprehend them, in print that contrasts highly with the background on whichthey appear;B. in communications disseminated orally or through audible means (
e.g.
, radio orstreaming audio), the required disclosures are delivered in a volume and cadencesufficient for an ordinary consumer to hear and comprehend them;C. in communications disseminated through video means (
e.g.
, television orstreaming video), the required disclosures are in writing in a form consistent withsubpart (A) of this definition and shall appear on the screen for a durationsufficient for an ordinary consumer to read and comprehend them, and in thesame language as the predominant language that is used in the communication;andD. in all instances, the required disclosures: (1) are presented in an understandablelanguage and syntax; and (2) include nothing contrary to, inconsistent with, or inmitigation of any statement contained within the disclosure or within anydocument linked to or referenced therein.4. “Covered information” shall mean information from or about an individual consumerincluding, but not limited to: (a) a first or last name; (b) a home or other physical address,including street name and name of city or town; (c) an email address or other onlinecontact information, such as an instant messaging user identifier or a screen name; (d) amobile or other telephone number; (e) photos and videos; (f) Internet Protocol (“IP”)address, User ID or other persistent identifier; (g) physical location; or (h) anyinformation combined with any of (a) through (g) above.5. “Nonpublic user information” shall mean covered information that is restricted by one ormore privacy setting(s).6. “Privacy setting” shall include any control or setting provided by Respondent that allowsa user to restrict which individuals or entities can access or view covered information.7. “Representatives” shall mean Respondent’s officers, agents, servants, employees,attorneys, and those persons in active concert or participation with them who receiveactual notice of this Order by personal service or otherwise.8. “Third party” shall mean any individual or entity that uses or receives coveredinformation obtained by or on behalf of Respondent, other than: (1) a service provider of Respondent that (i) uses the covered information for and at the direction of Respondentand no other individual or entity and for no other purpose; and (ii) does not disclose thecovered information, or any individually identifiable information derived from suchcovered information, except for, and at the direction of, Respondent, for the purpose of providing services requested by a user and for no other purpose; or (2) any entity thatuses the covered information only as reasonably necessary: (i) to comply with applicablelaw, regulation, or legal process, (ii) to enforce Respondent’s terms of use, or (iii) to

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