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Facebook founder Mark Zuckerberg appears before the House Ener y and Commerce Committee about
privacy and election meddling on April 11, 2018. David Butow / Redux for NBC News
By Herb Weisbaum
Facebook users' confidence in the company has plunged by 66 percent as a result of revelations
that data analysis firm Cambridge Analytica inappropriately acquired data on tens of millions of
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Facebook users — and CEO Mark Zuckerberg’s public mea culpa during two days of congressional
hearings last week did not change that, a new report reveals.
Only 28 percent of the Facebook users surveyed after Zuckerberg’s testimony last week believe
the company is committed to privacy, down from a high of 79 percent just last year, according to
a survey by the Ponemon Institute, an independent research firm specializing in privacy and data
protection.
The institute’s chairman, Larry Ponemon, who has been tracking online privacy for more than
20 years, told NBC News he was “shocked” by the negative repercussions. He expected a
decrease in trust, but not a 66 percent drop.
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“We found that people care deeply about their privacy and when there is a mega data breach, as
in the case of Facebook, people will express their concern. And some people will actually vote
with their feet and leave,” Ponemon said.
Ponemon asked about 3,000 Facebook users how they felt about the statement “Facebook is
committed to protecting the privacy of my personal information.” In 2011, 67 percent agreed.
That grew to 79 percent in 2017.
But just one week after NBC News' U.K. partner ITN Channel 4 News dropped the Cambridge
Analytica bombshell, confidence in Facebook dropped to 27 percent. It went up slightly (33
percent) the next week and then dipped to 28 percent after Zuckerberg’s highly publicized
testimony on Capitol Hill.
Ponemon told NBC News he was not surprised that Zuckerberg’s performance before Congress
did not move the needle upward.
“I don't care if he was the most eloquent, the smartest privacy guy in the world, there was no
positive outcome that could have been achieved,” Ponemon said.
Most people who use social media realize their information is being collected and shared or sold.
That’s Facebook’s business model.
“It is all about economics,” wrote one of the Ponemon survey respondents. “Facebook doesn’t
see any value in protecting the privacy of its users.”
“It is foolish to believe Facebook or any other [social network] would be committed to protecting
my privacy,” another said.
The majority of respondents made it clear that they want Facebook to tell them when something
happens to their data. Remember, users only found out about the Cambridge Analytica breach,
which took place in 2015, when it was reported by ITN Channel 4 News and written up in The
New York Times.
The survey revealed that 67 percent believe Facebook has “an obligation” to protect them if their
personal information is lost or stolen and 66 percent believe the company should compensate
them if that happens.
Facebook users also expressed the desire to have more control over their data: Sixty-six percent
say they have a right not to be tracked by Facebook, up from 55 percent before the breach. Sixty-
five percent want the company to disclose how it uses the personal information it collects.
Facebook did not respond to a NBC News request for a response to the Ponemon survey.
In late March, Facebook announced steps to make its privacy policies more transparent. A
central hub will make it easier for users to see their privacy settings and to find out what data
they’re sharing and which companies are collecting it.
Will they actually do that? Probably not, Ponemon said. And other experts agree.
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“Just because people say they're concerned about their privacy doesn't necessarily mean it will
affect their behavior,” said Robert Blattberg, a professor of marketing at Carnegie Mellon
University’s Tepper School of Business. “If you look at these kinds of events, people get all upset
about it and then their behavior doesn't change very much.”
It really gets into the benefits of Facebook — which is ingrained in so many people’s lives — and if
users see a viable alternative. Instagram may seem like a better choice, but it’s owned by
Facebook.
“At first, I thought about closing my Facebook account, but quickly realized that starting anew
with another [social network] would take lots of effort. Also, other company’s privacy practices
are likely to be just like Facebook anyway,” wrote one of the survey respondents.
“I am very disappointed in Facebook, but I’m willing to give the company a second chance,”
another said.
Even so, a small percentage change in the number of people who use Facebook — a drop of 3 or 4
percent — could “significantly impact their profitability,” Blattberg told NBC News.
Nuala O’Connor, president and CEO of the Center for Democracy & Technolo y, doesn’t think
people should delete their Facebook accounts to send a message to the company.
“This is a major platform that is important to people for connection and community,” O’Connor
said. “I think a more reasonable response is to change your privacy settings. I also think the onus
is on Facebook to be more transparent.”
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Blattberg said legislation is “the biggest risk” Facebook faces as a result of the Cambridge
Analytica fiasco. If users were required to opt in — to affirmatively give Facebook permission to
have their data collected, shared or sold — it could disrupt the company’s business model. The
impact would be felt by every online website and service that’s free to use for those willing to
give up their privacy.
The Facebook users surveyed by Ponemon clearly see the need for government action. More
than half (54 percent) said new rules are needed to protect privacy when accessing the internet.
For years, consumer advocates have called on Congress to pass strong online privacy
regulations, but lawmakers have been unwilling to act. And few consumer advocates expect any
meaningful legislation to come from a Congress focused on reducing regulations.
O’Connor, on the other hand, believes this may be “the watershed moment” that prods
congressional action.
“I think that the time has come for this country to consider baseline, comprehensive data
privacy legislation,” she said.
Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The
ConsumerMan website.
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