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Illustration: Sarah Grillo/Axios

The Federal Trade Commission has settled with Facebook over allegations that it "repeatedly used deceptive disclosures and settings to undermine users’ privacy preferences," in a deal that will apply some new oversight to its practices and force it to pay $5 billion.

Why it matters: Revelations last year that the political consultancy Cambridge Analytica had gathered a large trove of Facebook user data, and failed to get rid of it, set off a broader reckoning around data privacy in the era of Big Tech.

Details:

  • Facebook will pay $5 billion under the settlement for violating a 2012 agreement with the FTC.
  • The social giant will have to "conduct a privacy review of every new or modified product, service, or practice before it is implemented, and document its decisions about user privacy," the agency said.
  • The deal establishes a privacy committee on Facebook's board and makes chief executive Mark Zuckerberg personally part of the process of complying with the new restrictions.
  • Separately, the company reached a $100 million settlement with the Securities and Exchange Commission for "making misleading disclosures regarding the risk of misuse of Facebook user data."
  • Before going into effect, the settlement needs the approval of a federal court.

What they're saying: Zuckerberg said in a post that as a result of the deal, Facebook was "going to make some major structural changes to how we build products and run this company."

Yes, but: Democratic policymakers were critical of the settlement, which was approved by the Republican-controlled FTC along party lines.

  • "Even though this settlement is historic, in order to support it I would have to be confident that its combined terms would effectively deter Facebook from engaging in future law violations and send the message that order violations are not worth the risk," said Democratic FTC Commissioner Rebecca Kelly Slaughter in her dissent from the vote approving the settlement.
  • "I do not believe that is the case," she said.

The FTC also sued Cambridge Analytica, and settled with its former top executive and the developer responsible for making the app that collected the Facebook data in question.

The big picture: The settlement will roil an already active debate among lawmakers and advocates over how to best regulate data-hungry online services like Facebook.

  • The FTC announced the deal Wednesday only after it had briefed key congressional committees on its contents, according to a Capitol Hill aide familiar with the matter.

What's next: Facebook has its earnings call on Wednesday afternoon.

Go deeper:

Go deeper

Dave Lawler, author of World
32 mins ago - World

Globetrotting climate envoy Kerry makes Biden team’s first visit to China

Illustration: Aïda Amer/Axios

John Kerry became the first senior Biden administration official to touch down in China this week. He's also been the first to sit down with a string of world leaders.

Why it matters: Kerry may no longer be secretary of state, but you'd be forgiven for thinking otherwise after a glance at his calendar. The unusual role could make Kerry a foreign policy force multiplier for President Biden, or potentially a source of mixed messages.

Chicago releases video of fatal police shooting of 13-year-old boy

A small memorial is seen on April 15 in Chicago where 13-year-old Adam Toledo was shot and killed by a police officer in March. Photo: Kamil Krzaczynski/Getty Images

Chicago's independent police review board on Thursday released the body camera footage of an officer's fatal shooting of 13-year-old Adam Toledo on March 29.

The big picture: Tension continues to rise nationwide in response to police misconduct and racism. Thursday's footage release comes days after officer Kim Potter fatally shot Daunte Wright in a traffic stop near Minneapolis, where the trial of Derek Chauvin, a former police officer accused of murdering George Floyd, is ongoing.