Providence University College

471.12: Business Communications

Instructor: Paata Brekashvili
Summer 2023-2

Final Group Report

Group - D

Topic – Facebook
Problems Analyzed: -
 Misused Customer Information
 Data Privacy Invasion and concerns
 Introduction

In a time marked by the rapid evolution of digital technology and online interactions, the

issue of safeguarding user privacy has risen as a pivotal concern for both individuals and

enterprises. Facebook, an undisputed titan within the global social media sphere, has found itself

at the epicenter of a maelstrom of debates stemming from its management of user data. Thus, in

this report, our group aims to delve extensively into the intricacies of the privacy-related

predicaments that Facebook faces. We will scrutinize the profound implications of these

challenges for the company, focusing notably on the domain of business communication.

After thinking it over carefully, our group has decided to focus on the communication-

centric predicaments encountered by Facebook, specifically those related to data privacy and

customer information. Our objective is to explore the matters encompassing data privacy and the

potential encroachments on customer confidentiality perpetrated by Facebook. We believe this

topic aligns well with the core objectives of the course. as it allows us to analyze how business

communication practices can impact the reputation, trust, and overall success of a company in

today's digital age.

This report endeavors to pinpoint and deliberate upon two prominent predicaments

intertwined with business communication within the context of Facebook. It specifically

addresses the way the company's methodologies for data accumulation and its perceived affronts

to privacy have triggered apprehensions among users and regulatory bodies. The intention is to

scrutinize the impact of these challenges on Facebook's rapport with its user base, shareholders,

and the general populace.

 Worldwide data Statistics also show significant cases of privacy breeches done by

Facebook (TechRepublic, 2023)

Issues Statistics

privacy Breaches (Global) 87% of internet users are concerned about

privacy

Social Media Data Misuse 70% of users are worried about how their data

is used

Cambridge Analytica Impact 87 million Facebook users affected

Data Breaches and Legal Actions Over 80 legal cases and investigations

Financial Penalties $5 billion fine imposed on Facebook in the

US

ANALYSIS & SOLUTIONS

Facebook, now known as Meta, is considered as a social media giant and is one of the

oldest platforms, which has now amassed billions of users till now and as subordinated many

other companies under it. Surprisingly, we found out that for a corporation of that level, data

breeches and misconduct of terms and services is a common thing. One of the main problem user

faces is associated with company misusing user’s personal information and data.

 Customer Data Breech

Facebook is one of the oldest social media platforms and after the acquisition of

other platforms, it is now known as ‘META’. Surprisingly, despite being one of the best
organizations, it still failed in upholding consumer guidelines. In our analysis of the data

from various sources, we unveiled some shocking discoveries.

Specifically, Facebook's data misuse, notably the 2018 Cambridge Analytica

scandal, exposed significant issues in handling user data. The scandal revealed that a

third-party app collected personal data from about 87 million Facebook users without

proper consent, leading to concerns about political profiling and targeted advertising.

Furthermore, Facebook's collection of user information without consent, also

known as ‘shadow profiles’, complex privacy settings, and the exploitation of user

preferences for targeted ads also raised data privacy concerns. (Koskie Minsky LLP,

2022).

Subsequently, the misuse of user data raised ethical concerns about Facebook's

commitment to user privacy. This disconnection between its public image and actual

practices damaged the company's credibility, resulting in a loss of trust among users,

investors, and regulators.

Also, to make things worse for Facebook, media played a crucial role in

amplifying the negative aspects of Facebook's data misuse. The coverage highlighted the

extent of the breach and its impact on individual users, leading to a public relations

nightmare for the company. It was told that around 1.5 million users were affected by the

data breech. This in turn, coupled with the loss of trust, led to decreased user engagement,

as people became wary of sharing personal information on the platform. This affected

Facebook's advertising revenue model, which relies on user data to target ads effectively.

Finally, this turn of events led to long-term implications for Facebook's business.
 In the end, Facebook had to pay a large amount of monetary amount as a penalty,

and it was the highest penalty ever paid in Privacy Enforcement Actions. In exact words,

“Facebook, Inc. will pay a record-breaking $5 billion penalty, and submit to new

restrictions and a modified corporate structure that will hold the company accountable

for the decisions it makes about its users’ privacy, to settle Federal Trade Commission

charges that the company violated a 2012 FTC order by deceiving users about their

ability to control the privacy of their personal information,” (FTC, 2019)

Solutions

Resolving the issues originating from Facebook's information abuse requires a complex

methodology including different partners, including the organization, controllers, clients, and

the more extensive innovation industry. Here are a few stages that can add to taking care of

these issues:

 Strengthening Data Privacy Regulations: We should ought to establish and rigorously

enforce comprehensive data privacy regulations that provide clear directives for

companies regarding the acquisition, storage, and utilization of user data. Exemplary

models such as the European Union's General Data Protection Regulation (GDPR) could

serve as valuable templates, ensuring heightened transparency, explicit user consent, and

robust data safeguards.

 Transparent Data Gathering Procedures: Entities like Facebook should embrace

transparent methods for collecting data, offering users lucid, easily accessible insights

into how their information is employed. Each instance of data use should necessitate
 specific user consent, with users empowered to effortlessly tailor their preferences to their

liking.

 Ethical Framework Establishment: Firms should construct and adhere to ethical

frameworks that place user privacy and security above monetary gains. Nurturing a

corporate culture that esteems integrity and ethical conduct in data management is

paramount.

 User Awareness: Empowering users with knowledge about their data rights, privacy

configurations, and methods to shield their information is crucial. Furnishing

straightforward and comprehensible resources and guidelines is essential for enabling

users to make well-informed decisions about their digital presence.

 Enhanced Communication Strategies: Open and transparent communication with users

concerning alterations to privacy policies, data collection methodologies, and security

enhancements is paramount. Swiftly and candidly addressing concerns is pivotal in

rebuilding trust.

Thus, these are some of the solutions that can be very detrimental for the redemption of the

company. The recommendations laid out in the preceding sections offer a comprehensive

roadmap for effectively addressing the intricate landscape of challenges associated with data

privacy. These strategies enable companies like Facebook to navigate these complexities

responsibly and ethically. Enforcing stringent data privacy regulations, fostering transparent data

practices, and embracing robust security measures emerge as pivotal strategies for ensuring the

safeguarding of user data and fostering trust.

 PRIVACY CONCERNS
 Privacy concerns have been brought up as a result of Facebook's immense popularity and the

volume of user-generated information. There have been multiple instances where users' private

information was amassed without their consent and used for illegal purposes. These occurrences

have led to serious questions about Facebook's commitment to user privacy protection. The

situation was so dire that public trust in Facebook plummeted by a whopping 66% (NBC news,

2018).

In our analysis, we came across some of the corporate communication factors, such as ethical

considerations, public perception, and potential financial repercussions when analyzing how

Facebook has been condemned for compromising user privacy and its ramifications as a firm.

Firstly, it should be noted that Facebook has been the subject of multiple occurrences where

unauthorized parties gained access to users' private data.

To add more, Facebook has faced allegations of utilizing techniques like cookies and social

plugins to monitor users' online activities, even outside the confines of the Facebook platform.

This covert monitoring enables the company to amass substantial user data, which in turn is

employed for precise targeting in the realm of advertising.

Moreover, Criticism has been leveled at Facebook for the intricate nature of its privacy

settings and terms of service. These intricacies often result in user confusion regarding the full

extent of data usage. This confusion might inadvertently lead users to grant permission for

broader data sharing than originally intended.

Consequently, Facebook's business partnerships, which provide those companies access to

user data, have also come under fire. The platform came under fire for giving device makers

access to user information, which may have put user data in jeopardy. This raised concerns about
the level of control Facebook had over data once it had been shared with third parties (Graham-

Harrison & Cadwalladr, 2021).

Financial Impacts

This breech of privacy had a major impact on Ad Revenue. If users are cautious of

Facebook's data practices, they might be less likely to interact with advertising, which would

lower the platform's usefulness for advertisers. Concerns over their reputation may cause

advertisers to disassociate themselves from Facebook (Forbes, 2019).

Governments are getting more proactive in enforcing data privacy laws, which is changing

the regulatory landscape. More stringent regulations might compel Facebook to change the ways

in which it collects and shares data, which might influence how it runs ads and how it generates

income.

Solutions

Settling the issues starting from Facebook's security interruption and misuse requires a

prompt system that watches out for the concerns at their middle. This is the way this can be

achieved:

 Opt-In Model for User Tracking: Transition towards an opt-in model for user tracking.

Instead of clandestine tracking, seek explicit consent for data collection and tracking

mechanisms. This approach empowers users to exert control over their own data.
  Enhanced Mechanisms for User Consent: Implement user-friendly consent

mechanisms. This entails providing nuanced options for data sharing and ensuring that

users have full awareness of the scope of the data they are permitting for usage.

 External Oversight for Third-Party Accountability: Establish external oversight or

audits to ensure adherence to privacy policies. Independent audits can play a pivotal role

in rebuilding trust by validating ethical data handling practices.

 Improved User Communication Channels: Augment communication avenues to keep

users apprised of shifts in privacy policies, security enhancements, and data utilization

practices. Proactive communication can mitigate apprehensions and cultivate

transparency.

 Ethical Underpinnings in Design: Integrate ethical considerations into the design of

features and products. Prioritize user privacy and data security during the developmental

phase to preclude potential privacy lapses.

 Preventive Monitoring and Examination: Regularly examining data management

processes, internally and externally, to guarantee adherence to industry standards and

regulatory requirements.

 User-Centric Design: Intertwining user feedback and preferences with the formulation

of data privacy guidelines and protocols, signifying a commitment to fulfilling user

expectations.

In the end, Sustained enhancement and a user-focused approach are vital for maintaining data

privacy. Businesses must consistently assess and upgrade their data management methods

through user input, technological progress, and regulatory shifts. Through the application of
these approaches and active partnerships with regulators, users, and the broader tech sector,

Facebook can strive to rebuild confidence, uphold a favorable standing, and cultivate a more

secure digital realm for all involved parties.

Conclusion

To Conclude, In the world of constant technological evolution, the critical importance of

safeguarding consumer privacy has emerged as a central concern for both individuals and

enterprises. This comprehensive report done by our group has meticulously delved into the

complexities of the challenges related to privacy that Facebook grapples with, and it has

exhaustively explored the profound implications of these challenges on the company, with a

primary focus on the domain of business communication.

In this report, we provided a plethora of remedial measures and had done a keen

observation. These strategies enable companies like Facebook to navigate these complexities

responsibly and ethically. Enforcing stringent data privacy regulations, fostering transparent data

practices, and embracing robust security measures emerge as pivotal strategies for ensuring the

safeguarding of user data and fostering trust.

Furthermore, in an era where user trust is an invaluable asset, businesses must

acknowledge that their ethical stance and communication practices concerning data privacy carry

extensive repercussions. The insights furnished in this report advocate for a comprehensive

revaluation of data handling practices, accompanied by a resolute commitment to preserving user

privacy while nurturing transparent and ethical communication. By heeding these insights,

businesses can aspire to not only regain eroded trust but also pave the way for a digital
ecosystem built on the principles of transparency, responsibility, and the shared objective of

safeguarding user data.

By amalgamating these diverse measures and sustaining an unwavering focus on

progressive enhancement, Facebook can instill a culture of judicious data management. This path

leads toward rebuilding confidence, minimizing potential harm to reputation, and promoting a

culture of data privacy awareness throughout its platform.

 References

1) Doffman, Z. (2019, April 18). 1.5m Users Hit By New Facebook Privacy Breach As Extent Of

Data Misuse Exposed. Forbes. https://www.forbes.com/sites/zakdoffman/2019/04/18/facebook-

illegally-harvested-data-from-1-5m-users-as-it-leveraged-its-data-machine/?sh=254298686a2e

2) Facebook misuse of user data - Koskie Minsky LLP. (2022, May 18). Koskie Minsky LLP.

https://kmlaw.ca/cases/facebook-misuse-user-data/

3) FTC imposes $5 billion penalty and sweeping new privacy restrictions on Facebook. (2022,

January 27). Federal Trade Commission.

https://www.ftc.gov/news-events/news/press-releases/2019/07/ftc-imposes-5-billion-penalty-

sweeping-new-privacy-restrictions-facebook#:~:text=Facebook%2C%20Inc.%20will%20pay

%20a,2012%20FTC%20order%20by%20deceiving

4) Graham-Harrison, E., & Cadwalladr, C. (2021, September 29). Revealed: 50 million Facebook

profiles harvested for Cambridge Analytica in major data breach. The Guardian.

https://www.theguardian.com/news/2018/mar/17/cambridge-analytica-facebook-influence-us-

election

5) TechRepublic. (2023). Facebook data privacy scandal: A cheat sheet. TechRepublic.

https://www.techrepublic.com/article/facebook-data-privacy-scandal-a-cheat-sheet/

6) Top media influencers call for regulation and change at Facebook. (2018, April 18). [Video].

NBC News. https://www.nbcnews.com/business/consumer/trust-facebook-has-dropped-51-

percent-cambridge-analytica-scandal-n867011