Annual Allen And Co. Meeting In Sun Valley Draws CEO's And Business Leaders To The Mountain Resort Town

Mark Zuckerberg (Photo by Drew Angerer/Getty Images)2018 Getty Images

The Department of Justice may be pursuing a criminal investigation into  Facebook, reported the New York Times, which said a grand jury in the Eastern District of New York has subpoenaed at least two device makers about their data-sharing agreements with the social media giant.

Facebook is facing a lot of scrutiny from the federal government over its data practices, so let’s break down the risks facing this $473 billion company and its billionaire founder and CEO Mark Zuckerberg.

What’s this new investigation about? Is it related to Cambridge Analytica?

Facebook is a target of regulatory probes over its role with Cambridge Analytica, the British political ad targeting firm that accessed the personal preferences of 87 million people on Facebook during the 2016 U.S. general election. Facebook knew about the improper access but only informed users about it last year, just before the New York Times and The Observer reported on the data breach. The SEC is reportedly investigating Facebook’s public statements about the scandal, and Facebook is also reportedly being investigated by the Department of Justice’s securities fraud division.

A Facebook spokesperson would not comment on the specifics of the subpoenas, but stated that, “It has already been reported that there are ongoing federal investigations, including by the Department of Justice. As we’ve said before, we are cooperating with investigators and take those probes seriously. We’ve provided public testimony, answered questions, and pledged that we will continue to do so.”

The Eastern District said that per its usual policy it would neither confirm nor deny that an investigation was even happening.

I heard the Federal Trade Commission is looking at Facebook. Why?

Last year the FTC acknowledged that it was investigating Facebook’s privacy practices, beginning with issues related to Cambridge Analytica, but it’s also reported to have investigated subsequent revelations. It’s focused on whether these practices violated a prior consent decree with the regulatory body. That decree, finalized in 2012, settled claims against Facebook and also included an agreement about its future privacy practices. As a result of this investigation, the Washington Post recently reported, the regulatory body is considering applying a multibillion-dollar fine to the social media giant, suggesting the FTC believes that Facebook was in the wrong with how it handled its users’ data.

Facebook has argued sharing user information with software partners didn’t violate its prior privacy deal with the FTC, nor did it harm consumers. However, as a part of its 2012 settlement agreement, Facebook was required to keep regular records of its privacy practices so the FTC could monitor its compliance. A request by a grand jury for copies of data-sharing agreements could indicate that it’s investigating whether Facebook accurately reported on those agreements. If it didn’t, that could catch the interest of prosecutors.

“Filing false info with the FTC and other regulators can be criminally prosecuted,” Chris Hoofnagle, faculty director of the Berkeley Center of Law & Technology, told Forbes in an email.

What else might the Department of Justice be investigating?

It’s the subpoenas for data-sharing agreements with device makers that hint that prosecutors in the Eastern District may be looking into Facebook privacy practices beyond the Cambridge Analytica case, to how it reportedly allowed phone and device manufacturers to access its users’ personal data in ways that were an exception to restrictions it placed on app developers. For example, in allowing Apple and BlackBerry to access the data of users’ friends without their consent.

There are other laws that may be implicated here beyond just not accurately reporting privacy practices, according to Hoofnagle. Certain practices, he notes, might be considered “wiretapping” if users’ communications were intercepted.

Could Mark Zuckerberg go to jail?

If Facebook provided false information to the FTC, prison is a possibility, though not likely. Federal law prohibits making false statements to the government, and that’s punishable by up to five years in prison. (Just ask Martha Stewart or Michael Cohen.) But the standards are pretty strict: Prosecutors would have to prove beyond a reasonable doubt that officers at Facebook “knowingly and willfully” gave false information to the FTC.

That means that prosecutors would have to show that Zuckerberg was aware of the information in the compliance reports, that he knew the information was false and that he willingly consented to have that false information presented on behalf of Facebook. Even if that did happen—and right now there’s not much evidence to suggest that this is the case—it would be very difficult for the government’s attorneys to prove.

As for the other activities the DOJ might be investigating, there’s also a chance that Zuckerberg himself could face personal liability, Hoofnagle says, though again the bar would be pretty high for proving wrongdoing.

“Under other statutes, there is sometimes a specific standard articulated for personal liability,” he said. “A great deal will have to do with Zuckerberg’s personal direction of decisions.”

More Facebook coverage at Forbes:

Facebook’s Chris Cox Leaves After Privacy Pivot, He’s Made Millions In Facebook Stock

Facebook’s Mark Zuckerberg Says The Future Is Encrypted, Private Messaging

Mark Zuckerberg’s Security Costs Have Surged, Unlike Bezos, Ellison And Others

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Annual Allen And Co. Meeting In Sun Valley Draws CEO's And Business Leaders To The Mountain Resort Town

Mark Zuckerberg( Picture by Drew Angerer/Getty Images)2018 Getty Images

The Department of Justice might be pursuing a criminal examination into Facebook, reported the New York City Times, which stated a grand jury in the Eastern District of New york city has actually subpoenaed a minimum of 2 gadget makers about their data-sharing arrangements with the social networks giant.

Facebook is dealing with a great deal of examination from the federal government over its information practices, so let’s break down the dangers facing this$ 473 billion business and its billionaire creator and CEO Mark Zuckerberg.

(******************* )What’s this brand-new examination about?
Is it associated to Cambridge Analytica?(******************** )

Facebook is a target of regulative probes over its function with Cambridge Analytica, the British political advertisement targeting company that accessed the individual choices of87 million individuals on Facebook throughout the2016 U.S. basic election. Facebook understood about the inappropriate gain access to however just educated users about it in 2015, prior to the(**************** )New York City Times and The Observer (***************** )reported on the information breach. The SEC is apparently examining Facebook’s public declarations about the scandal, and Facebook is likewise apparently being examined by the Department of Justice’s securities scams department.(********** )(************** )A Facebook representative would not talk about the specifics of the subpoenas, however specified that,” It has actually currently been reported that there are continuous federal examinations, consisting of by the Department of Justice. As we have actually stated in the past, we are working together with private investigators and take those probes seriously. We have actually offered public statement, responded to concerns, and vowed that we will continue to do so.”

(************** )The Eastern District stated that per its normal policy it would neither validate nor reject that an examination was even taking place.

I heard the Federal Trade Commission is taking a look at Facebook. Why?

(********************** )(**** )

In 2015 the FTC acknowledged that it was examining Facebook’s personal privacy practices, starting with concerns connected to Cambridge Analytica, however it’s likewise reported to have actually examined subsequent discoveries. It’s concentrated on whether these practices breached a previous authorization decree with the regulative body. That decree, settled in 2012, settled claims versus Facebook and likewise consisted of a contract about its future personal privacy practices. As an outcome of this examination, the Washington Post just recently reported, the regulative body is thinking about using a multibillion-dollar fine to the social networks giant, recommending the FTC thinks that Facebook remained in the incorrect with how it managed its users’ information.

Facebook has actually argued sharing user details with software application partners didn’t break its previous personal privacy handle the FTC, nor did it hurt customers. Nevertheless, as a part of its2012 settlement arrangement, Facebook was needed to keep routine records of its personal privacy practices so the FTC might monitor its compliance. A demand by a grand jury for copies of data-sharing arrangements might show that it’s examining whether Facebook precisely reported on those arrangements. If it didn’t, that might capture the interest of district attorneys.(********** )

“Filing incorrect information with the FTC and other regulators can be criminally prosecuted,” Chris Hoofnagle, professors director of the Berkeley Center of Law & Innovation, informed Forbes in an e-mail.

(******************* )What else might the Department of Justice be examining?

It’s the subpoenas for data-sharing arrangements with gadget makers that hint that district attorneys in the Eastern District might be checking out Facebook personal privacy practices beyond the Cambridge Analytica case, to how it apparently permitted phone and gadget makers to access its users’ individual information in manner ins which were an exception to constraints it put on app designers. For instance, in enabling Apple and BlackBerry to access the information of users ‘pals without their authorization.

There are other laws that might be linked here beyond simply not precisely reporting personal privacy practices, according to Hoofnagle.
Specific practices, he keeps in mind, may be thought about “wiretapping “if users ‘interactions were obstructed.

Could Mark Zuckerberg go to prison?(******************** )

If Facebook offered incorrect
details to the FTC, jail is a possibility, though not most likely. Federal law forbids making incorrect declarations to the federal government, which’s punishable by approximately 5 years in jail.( Simply ask Martha Stewart or Michael Cohen.) However the requirements are quite stringent: District attorneys would need to show beyond an affordable doubt that officers at Facebook” intentionally and willfully “provided incorrect details to the FTC.

That suggests that district attorneys would need to reveal that Zuckerberg knew the details in the compliance reports, that he understood the details was incorrect which he voluntarily granted have that incorrect details provided on behalf of Facebook. Even if that did occur– and today there’s very little proof to recommend that this holds true– it would be really hard for the federal government’s lawyers to show.

When It Comes To the other activities the DOJ may be examining, there’s likewise an opportunity that Zuckerberg himself might deal with individual liability, Hoofnagle states, however once again the bar would be quite high for showing misbehavior.(********** )

” Under other statutes, there is in some cases a particular basic articulated for individual liability, “he stated.” A lot will pertain to Zuckerberg’s individual instructions of choices.”

More Facebook protection at Forbes:

Facebook’s Chris Cox Leaves After Personal Privacy Pivot, He’s Made Millions In Facebook Stock

Facebook’s Mark Zuckerberg States The Future Is Encrypted, Personal Messaging

Mark Zuckerberg’s Security Expenses Have actually Risen, Unlike Bezos, Ellison And Others

” readability =”11670207116304″ >

Annual Allen And Co. Meeting In Sun Valley Draws CEO's And Business Leaders To The Mountain Resort Town

Mark Zuckerberg( Picture by Drew Angerer/Getty Images )(************************************************ )Getty Images

The Department of Justice might be pursuing a criminal examination into Facebook, reported the New York City Times , which stated a grand jury in the Eastern District of New york city has actually subpoenaed a minimum of 2 gadget makers about their data-sharing arrangements with the social networks giant.

Facebook is dealing with a great deal of examination from the federal government over its information practices, so let’s break down the dangers facing this $ 473 billion business and its billionaire creator and CEO Mark Zuckerberg.

What’s this brand-new examination about? Is it associated to Cambridge Analytica?

Facebook is a target of regulative probes over its function with Cambridge Analytica , the British political advertisement targeting company that accessed the individual choices of 87 million individuals on Facebook throughout the 2016 U.S. basic election. Facebook understood about the inappropriate gain access to however just educated users about it in 2015, prior to the New York City Times and The Observer reported on the information breach. The SEC is apparently examining Facebook’s public declarations about the scandal, and Facebook is likewise apparently being examined by the Department of Justice’s securities scams department.

A Facebook representative would not talk about the specifics of the subpoenas, however specified that, “It has actually currently been reported that there are continuous federal examinations, consisting of by the Department of Justice. As we have actually stated in the past, we are working together with private investigators and take those probes seriously. We have actually offered public statement, responded to concerns, and vowed that we will continue to do so.”

The Eastern District stated that per its normal policy it would neither validate nor reject that an examination was even taking place.

I heard the Federal Trade Commission is taking a look at Facebook. Why?

In 2015 the FTC acknowledged that it was examining Facebook’s personal privacy practices, starting with concerns connected to Cambridge Analytica, however it’s likewise reported to have actually examined subsequent discoveries. It’s concentrated on whether these practices breached a previous authorization decree with the regulative body. That decree, settled in 2012, settled claims versus Facebook and likewise consisted of a contract about its future personal privacy practices. As an outcome of this examination, the Washington Post just recently reported, the regulative body is thinking about using a multibillion-dollar fine to the social networks giant, recommending the FTC thinks that Facebook remained in the incorrect with how it managed its users’ information.

Facebook has actually argued sharing user details with software application partners didn’t break its previous personal privacy handle the FTC, nor did it hurt customers. Nevertheless, as a part of its 2012 settlement arrangement, Facebook was needed to keep routine records of its personal privacy practices so the FTC might monitor its compliance. A demand by a grand jury for copies of data-sharing arrangements might show that it’s examining whether Facebook precisely reported on those arrangements. If it didn’t, that might capture the interest of district attorneys.

“Filing incorrect information with the FTC and other regulators can be criminally prosecuted,” Chris Hoofnagle, professors director of the Berkeley Center of Law & Innovation, informed Forbes in an e-mail.

What else might the Department of Justice be examining?

It’s the subpoenas for data-sharing arrangements with gadget makers that hint that district attorneys in the Eastern District might be checking out Facebook personal privacy practices beyond the Cambridge Analytica case, to how it apparently permitted phone and gadget makers to access its users’ individual information in manner ins which were an exception to constraints it put on app designers. For instance, in enabling Apple and BlackBerry to access the information of users’ pals without their authorization.

There are other laws that might be linked here beyond simply not precisely reporting personal privacy practices, according to Hoofnagle. Specific practices, he keeps in mind, may be thought about “wiretapping” if users’ interactions were obstructed.

Could Mark Zuckerberg go to prison?

If Facebook offered incorrect details to the FTC, jail is a possibility, though not most likely. Federal law forbids making incorrect declarations to the federal government, which’s punishable by approximately 5 years in jail. (Simply ask Martha Stewart or Michael Cohen.) However the requirements are quite stringent: District attorneys would need to show beyond an affordable doubt that officers at Facebook “intentionally and willfully” provided incorrect details to the FTC.

That suggests that district attorneys would need to reveal that Zuckerberg knew the details in the compliance reports, that he understood the details was incorrect which he voluntarily granted have that incorrect details provided on behalf of Facebook. Even if that did occur– and today there’s very little proof to recommend that this holds true– it would be really hard for the federal government’s lawyers to show.

When It Comes To the other activities the DOJ may be examining, there’s likewise an opportunity that Zuckerberg himself might deal with individual liability, Hoofnagle states, however once again the bar would be quite high for showing misbehavior.

“Under other statutes, there is in some cases a particular basic articulated for individual liability,” he stated. “A lot will pertain to Zuckerberg’s individual instructions of choices.”

More Facebook protection at Forbes :

Facebook’s Chris Cox Leaves After Personal Privacy Pivot, He’s Made Millions In Facebook Stock

Facebook’s Mark Zuckerberg States The Future Is Encrypted, Personal Messaging

Mark Zuckerberg’s Security Expenses Have actually Risen, Unlike Bezos, Ellison And Others

.