FTC and Meta Escalate Privacy Skirmishes

The FTC and other regulators have long had Meta (owner of Facebook and Instagram, among others) in their sights for privacy reasons. In early May, the agency very publicly went after Meta for alleged violation of two ongoing privacy settlements under which Meta had already paid millions of dollars in fines. The FTC has proposed new conditions on those existing settlements (one of which involves children's privacy) and will require Meta to make the case for why the new conditions should not be imposed.  Meta has promised to fight the new conditions.  

Why It Matters

Any company under an ongoing settlement decree with a federal agency remains subject to compliance conditions. Even for a large company like Meta that can absorb large fines, the ongoing oversight and cooperation requirements with the feds can be a significant hindrance to "business as usual." In addition, the FTC in this case is proposing massive changes that include strict limits on dealing with data of kids under 18, which would be both operationally hugely disruptive and will face weighty legal challenges from Meta.