Specifically, Facebook is accused of misleading parents about the extent of their control over their children within the Messenger Kids app, violating a 2019 privacy agreement.
The FTC is proposing to tighten an existing privacy agreement to prohibit Facebook from profiting from the data of minors (under 18), including in its virtual reality business.
Meta shares (Facebook's parent company) fell by as much as 2% following the news. |
In response to the issue, Meta stated: "We will strongly fight against this action."
According to market research firm Insider Intelligence, approximately 5.2% of monthly Facebook users and 12.6% of monthly Instagram users in the US are under 18 years old.
Samuel Levine, Director of the FTC's Consumer Protection Bureau, stated: "Facebook has repeatedly violated its privacy commitments, putting young users at risk."
In 2019, Facebook agreed to pay a record $5 billion fine to settle allegations of misleading users about the extent of their control over their personal data.
According to PLO
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