Facebook–Cambridge

Analytica data scandal

GROUP MEMBERS(NO.6th ):
Smita Shukla - 18BSP1209
Shweta goyal – 18BSP1183

SUBMITTED TO: Prof. Anahat Hulyalkar

Introduction -
• The case discusses the data breach scandal involving the world’s largest social
media network, Facebook, its impact on the company, and the challenges facing the
social media
• Facebook–Cambridge Analytica data scandal-major political scandal in 2018.
• Facebook was caught in a major data breach scandal in which a political consulting
firm – Cambridge Analytica – pulled out the personal data of more than 87 million
Facebook users without their consent.
• The data was allegedly used in favor of the US Presidential candidate, Donald
Trump, during the 2016 elections.
• In fact, the Federal Trade Commission (FTC) is investigating Facebook as a result
of the scandal. This will have a short-term​ and long- term implication for companies
that collect and use private data, and the users who provide it.
Cambridge Analytica Data Scandal -
• Cambridge Analytica Ltd (CA) was a British political consulting firm which
combined data mining, data brokerage, and data analysis with strategic
communication during the electoral processes.
• In March 2018, multiple media outlets broke news of Cambridge Analytica's
business practices.
• The New York Times stated that the company had acquired and used personal data
about Facebook users from an external researcher who had told Facebook he was
collecting it for academic purposes.
• The personal data of up to 87 million Facebook users were acquired via the
270,000 Facebook users who used a Facebook app called "This Is Your Digital
Life."
Facebook under fire
• With CA scandal, Facebook had to face the heat in many countries
• Out of 87 million affected people, 70.5 were from US and remaining were from
UK, Canada, Australia and India.
• On March 2018, FTC opened up investigation against Facebook
• US lawmaker urged Zuckerberg to testify before congress
• UK law enforcement officials opened up investigation
• British and American lawyers also launched a joint class action against Facebook
• Nigerian government too began investigating Facebook
• Then the EU’s Electoral Commission and the Privacy commissioner of Austria
also officially initiated investigations into Facebook actions
 Facebook under fire
• After data leak scandal, many of its user started deleting and deactivating their
account
• On March 20, 2018, hashtag #DeleteFacebook was trending worldwide on Twitter
• Many celebrities urged Facebook users to terminate their account
• Actor – Comedian Will Ferrell and Playboy
• Tech Billionaire Alon Musk
• Brian Acton, co-founder of WhatsApp
• Result – Facebook’s share price fell more than 6% in 24 hours
• In 10 days, Facebook lost more than US$70 billion in market value
• In May, 2017, CA announced it was shutting down its operations
• By May, 2018, CA started insolvency proceedings in the US and UK
Challenges -
• Retaining trust
• Decline in the public’s perception
• Losing advertisement projects
• Delay in launch of new product
• Legal issues
• Stock prices
7 Key Takeaways for Pharmaceutical Marketing
• Go small
• Be Transparent
• Ask the right questions
• Understand new regulations
• Seek Pharma-friendly partners
• Protect your own privacy
• Don’t despair