Yesterday the FTC settled a similar case with Google Inc. (NASDAQ: GOOG) but that one cost Google $22.5 million. The difference is that Google had already agreed to stop passing around customer data and then went ahead and did it anyway. Following the Google precedent, if Facebook should fail to comply with today’s announced agreement, “Facebook will be liable for a broad range of deceptive conduct.” And that liability will very likely come with a price tag attached to it.
Of course in the great scheme of things, a fine of $22.5 million to either Google or Facebook is relative peanuts. But getting crosswise with the FTC can make a company’s life more difficult and expensive, to say nothing of the dings to a firm’s public image.
Facebook’s shares are up about 2.% today at $21.56 in a post-IPO range of $19.82-$45.00.
The FTC’s press release is available here.
Paul Ausick
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