Facebook shares edge higher as US FTC investigates tech platform’s data practices

Facebook shares closed in the green Monday as the social media platform faces more questions over its data privacy practices.

Facebook shares edge higher as US FTC investigates tech platform’s data practices

Another day, another Facebook data story. Facebook shares moved a little higher in the US Monday trading session amid a more optimistic tone and as the share price had fallen below $160 per share.

However, the US Federal Trade Commission also confirmed it has an open investigation into the social media platform’s data security practices.

Facebook shares ended 0.42% higher at $160.06, Monday. After-hours activity of the stock is also currently positive.

US Investigation

As Cambridge Analytica and Facebook are facing questions in the UK and Europe, the US FTC issued a statement Monday, confirming that Mark Zuckerberg’s company is being investigated.

“The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers,” said acting director of the FTC’s bureau of consumer protection, Tom Pahl.

“Foremost among these tools is enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act,” Pahl said.

He added: “The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices.”

Attorney Generals write to Facebook

With little sign that the data breach issue will calm down anytime soon, the US National Association of Attorneys General, representing 37 states, wrote to CEO Zuckerberg to find out exactly how the Cambridge Analytica data breach could have happened.

“As the chief law enforcement officers of our respective states, we place a priority on protecting user privacy, which has been repeatedly placed at risk because of businesses’ failure to properly ensure those protections,” the group wrote in a letter addressed to Zuckerberg.

“Most recently, we have learned from news reports that the business practices within the social media world have evolved to give multiple software developers access to personal information of Facebook users. These reports raise serious questions regarding consumer privacy,” the letter states.

It’s likely that Facebook will need to answer a lot of questions about its data privacy rules and practices and prove its intentions and current practices are fit for purpose and do protect users’ private data.

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