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Zuckerberg Flubs Details of Facebook Privacy Commitments
Headline Topics |
2018/04/13 12:13
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Over two days of questioning in Congress, Facebook CEO Mark Zuckerberg chief revealed that he didn’t know key details of a 2011 consent decree with the Federal Trade Commission that requires Facebook to protect user privacy.
With congressional hearings over and no immediate momentum behind calls for regulation, the biggest hammer still hanging over Facebook in the U.S. is a fresh FTC investigation . The probe follows revelations that pro-Trump data-mining firm Cambridge Analytica acquired data from the profiles of millions of Facebook users. Facebook also faces inquiries in Europe.
The 2011 agreement bound Facebook to a 20-year privacy commitment , and any violations of that pact could cost Facebook a ton of money, even by its flush-with-cash standards. If Zuckerberg’s testimony before Congress is any indication, the company might have something to worry about.
Zuckerberg repeatedly assured lawmakers Tuesday and Wednesday that he believed Facebook is in compliance with that 2011 agreement. But he also flubbed simple factual questions about the consent decree.
“Congresswoman, I don’t remember if we had a financial penalty,” Zuckerberg said under questioning by Colorado Rep. Diana DeGette on Wednesday.
“You’re the CEO of the company, you entered into a consent decree and you don’t remember if you had a financial penalty?” she asked. She then pointed out that the FTC doesn’t have the authority to issue fines for first-time violations.
In response to questioning by Rep. Mike Doyle of Pennsylvania, Zuckerberg acknowledged: “I’m not familiar with all of the things the FTC said.”
Zuckerberg also faced several questions from lawmakers about how long it takes for Facebook to delete user data from its systems. He didn’t know.
The 2011 consent decree capped years of Facebook privacy mishaps, many of which revolved around its early attempts to follow users and their friends around the web. Any violations of the 2011 agreement could subject Facebook to fines of $41,484 per violation per user per day. To put that in context, Facebook could theoretically owe $8 billion for one single day of a violation affecting all of its American users.
The current FTC investigation will look at whether Facebook engaged in “unfair acts” that cause “substantial injury” to consumers. |
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Facebook to stop spending against California privacy effort
Headline Topics |
2018/04/12 12:30
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Facebook says it will stop spending money to fight a proposed California ballot initiative aimed at giving consumers more control over their data.
The measure, known as the "California Consumer Privacy Act," would require companies to disclose upon request what types of personal information they collect about someone and whether they've sold it. It also would allow customers to opt out of having their data sold.
The company made the announcement Wednesday as chief executive Mark Zuckerberg underwent questioning from Congress about the handling of user data.
Pressure has mounted on Facebook to explain its privacy controls following revelations that a Republican-linked firm conducted widespread data harvesting.
Facebook had donated $200,000 to a committee opposing the initiative in California - part of a $1 million effort by tech giants to keep it off the November ballot.
Facebook said it ended its support "to focus our efforts on supporting reasonable privacy measures in California."
Proponents of the ballot measure applauded the move.
"We are thrilled," said Mary Ross, president of Californians for Consumer Privacy.
The California Chamber of Commerce and other groups are fighting to keep the measure off the ballot through the "Committee to Protect California Jobs." Google, AT&T, Verizon and Comcast also contributed $200,000 each to that effort in February.
Committee spokesman Steve Maviglio said the measure would hurt the California economy.
"It is unworkable and requires the internet in California to operate differently - limiting our choices, hurting our businesses, and cutting our connection to the global economy," he said. |
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Russian court blocks popular messaging app in privacy row
Industry News |
2018/04/11 12:30
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share its encryption data with authorities.
The Moscow court on Friday ruled in favor of the Russian communications watchdog, which had demanded that Telegram be blocked in Russia until it hands over the keys to its encryption.
The ban comes after a protracted dispute between Telegram and Russian authorities, who insist they need access to the encryption keys to investigate serious crimes, including terrorist attacks. Telegram is arguably the first widely popular means of communications in Russia that has been officially banned.
Telegram, a popular app developed by Russian entrepreneur Pavel Durov, argues that Russia's FSB intelligence service is violating consumer rights, while authorities say the app has been used by violent extremists.
Durov had asked his lawyers not to attend Friday's court hearing because he said he saw the verdict as a foregone conclusion.
Pavel Chikov, one of Telegram's lawyers, said in a post on his Telegram channel that the company would not back down in the face of the Russian intelligence services because the court hearing, which lasted about 20 minutes, showed that the case against Telegram is politically motivated.
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Singer Cliff Richard's case against BBC begins in High Court
Marketing |
2018/04/09 12:29
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Longtime British rock icon Cliff Richard's case against the BBC's coverage of a police raid at his home has begun in a London court.
Richard is suing the broadcaster for its coverage of the 2014 raid, when police were investigating an alleged sex assault.
The 77-year-old singer was never charged with any crime. His lawsuit claims he suffered "profound" damage to his reputation as a result of the BBC's coverage of the police activity at his home.
BBC says it will "vigorously" rebut Richard's case. Richard's lawyer Justin Rushbrooke told the court BBC used its cameras to "spy" into Richard's home.
He said it was hard to describe "the sense of panic and powerlessness" Richard experienced when he realized the BBC was broadcasting images of the raid based on allegations he knew were false.
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Court: Teen accused in school shooting plot deserves bail
Topics |
2018/04/08 12:29
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The Vermont Supreme Court has ruled that a teenager accused of planning a shooting at his former high school should not be kept in jail pending his trial.
The state's top court ruled on Wednesday that there's not enough evidence to show 18-year-old Jack Sawyer, of Poultney, attempted a crime, only that he prepared to commit one.
The decision reverses a lower-court order that Sawyer be held without bail.
An attorney for Sawyer had argued that while the teen made preparations for a shooting at Fair Haven Union High School he didn't take any concrete steps that under state law would justify charges including attempted aggravated murder, which allows a judge to reject bail.
Court documents say Sawyer had planned to carry out the attack last month. Sawyer has pleaded not guilty.
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North Carolina court allows case against dance instructors
Lawyer News |
2018/04/07 12:29
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North Carolina's highest court says dance instructors who glided away to a competing dance studio can still be sued by the employer who wrangled the foreign-born pair's permission to work in the United States.
Happy Dance Inc. studio owner Michael Krawiec said Wednesday he's not yet discussed with his lawyer how to proceed after last week's ruling by the state Supreme Court.
The court decided breach of contract and other claims can continue against two dance instructors from Bosnia and Serbia, but the Charlotte studio that hired them away is largely out of the woods.
U.S. dance studios face a chronic search for instructors and have filled the gap by importing foreign workers from Eastern Europe and other countries where learning to waltz or tango is part of growing up. |
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Retailers hope for certainty as Supreme Court hears tax case
Industry News |
2018/04/06 12:29
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Retailers are hoping for a resolution this year from the Supreme Court, which hears arguments Tuesday in a decades-old dispute: Whether companies must collect sales tax on items sold in a state where they don't have a store or other building.
If the court backs government officials who say they're losing billions of dollars in uncollected taxes, thousands of small companies could be forced to start charging their out-of-state customers for them. Some businesses fear that could alienate customers used to tax-free shopping. On the other side: Retailers who do collect sales tax and believe those who don't have an unfair advantage.
The justices will hear online retailers Wayfair, Overstock.com and Newegg challenging a South Dakota law enacted last May requiring out-of-state retailers that have sales of more than $100,000 or over 200 transactions a year in the state to collect sales tax. Their decision could have national implications on e-commerce, although Congress can pass legislation afterward that broadens or narrows the law.
It's not only about the money, says Stephanie Harvey, owner of exit343design in Conshohocken, Pennsylvania. There are more than 10,000 sales tax jurisdictions in the United States: 35 states, the District of Columbia, counties and municipalities.
"Adding this sales tax isn't just about the tax itself — it's about the cost of time to navigate and file (taxes) or the additional expense of hiring someone to do so on behalf of the business," says Harvey, whose design and printing company has an online store and sells merchandise to other retailers.
The justices are likely to rule by June on whether to overturn a 1992 decision, Quill v. North Dakota, that said companies cannot be forced to collect sales tax from customers in a state where they don't have a physical presence like a store or distribution center. Collecting tax from online sales hasn't been a question for big online retailers like Walmart or Macy's since they have physical stores in most or all states. They also have accounting systems and financial staffs to handle the work.
Small retailers have software options to help collect taxes and do the administrative work, but it's an added cost. Whether it's worth it may depend on how much revenue a seller gets from other states. The most comprehensive software can work with the programs retailers use to process sales transactions. The software sellers determine the correct sales tax rate and submit payments and reports to tax authorities. |
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