Facebook to Pay $100 Million SEC Fine Over Cambridge Data Use
- Social network misled investors about misuse of data, SEC says
- Sanction adds to record $5 billion penalty imposed by FTC
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Facebook Inc. will pay $100 million to resolve U.S. Securities and Exchange Commission claims that the social networking giant misled investors about the misuse of account holders’ data, adding to the litany of fines against the firm over privacy violations.
Even though Facebook was aware by late 2015 that an outside developer had been misusing information gathered from its customers, the company publicly downplayed any risk of the data being handled in violation of its rules as “merely hypothetical," the SEC said in a Wednesday statement. The allegations relate to data obtained by Cambridge Analytica, a consulting firm hired by President Donald Trump’s 2016 campaign.