Facebook Shares Take a Hit as FTC Eyes Privacy Practices
Stocks at Meta (Facebook) slipped over 5% in New York trading after the U.S. Federal Trade Commission (FTC) announced it’s launching an open but non‑public investigation into the company’s data privacy procedures.
What the FTC is Saying
- According to Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection, the agency is “firmly committed” to using all its tools to safeguard customer privacy.
- “The top tool is enforcement action against companies that slip their privacy promises,” Pahl said, citing failures to uphold the Privacy Shield and any unfair practices that cause “substantial injury” to users.
- Companies that have previously settled FTC actions must meet ongoing privacy and data‑security obligations.
- “We take privacy concerns seriously, especially when shaped by press, and we’ll pursue X‑pending investigations when the public interest demands it.”
Why this Matters for Investors
Historically, the FTC rarely confirms investigations before filing a formal complaint—so the disclosure itself signals a potential regulatory flare. Investors are already rethinking risk scores for data‑centric tech.
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