Facebook Reaches SEC Privacy Pact -- WSJ

Date : 07/24/2019 @ 8:02AM
Source : Dow Jones News
Stock : Facebook Inc (FB)
Quote : 190.04  0.49 (0.26%) @ 3:17PM

Facebook Reaches SEC Privacy Pact -- WSJ

Facebook (NASDAQ:FB)
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By Emily Glazer 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (July 24, 2019).

The Securities and Exchange Commission is expected to announce a settlement with Facebook Inc. on Wednesday related to claims it inadequately disclosed risks involving its privacy practices, a person familiar with the matter said.

The settlement, which is expected to include a fine larger than $100 million, focuses on allegations the social-media company insufficiently warned investors that developers and other third parties may have obtained users' data without their permission or in violation of Facebook policies, the person said.

The SEC began probing Facebook after revelations that Cambridge Analytica, a data-analytics firm that had ties to President Trump's 2016 campaign, got access to information on millions of Facebook users.

Around that time, the SEC requested information from Facebook as it sought to understand how much the company knew about Cambridge Analytica's use of the data and how Facebook analyzed the risk it faced if developers were to share data with others in violation of its policies, The Wall Street Journal previously reported.

The SEC is one of several government agencies investigating Facebook and its handling of user data. It enforces securities laws governing what must be disclosed to shareholders so they can make informed investment decisions.

The likely SEC settlement coincides with an expected Federal Trade Commission settlement with Facebook as soon as this week that includes a roughly $5 billion fine related to its privacy practices, The Wall Street Journal previously reported.

Facebook is set to report its quarterly earnings after the stock market close on Wednesday.

The SEC didn't immediately respond to a request for comment. Facebook declined to comment.

Jeff Horwitz contributed to this article.

Write to Emily Glazer at Emily.Glazer@wsj.com

 

(END) Dow Jones Newswires

July 24, 2019 02:47 ET (06:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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