Sunday 2 September 2012

After Facebook privacy snafu, FTC may force companies to admit wrongdoing even if they settle

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The FTC settled two high-profile cases with Google and Facebook this week, but in both cases the technology giants got off without having to admit any wrongdoing in the cases. Google simply will pay its $22.5 million fine, while Facebook' privacy policies will be assessed by a third party every two years, among a number of other restrictions — but terms of the settlement mean that both companies are exempt from owning up to the behaviors that got them into trouble in the first place. In the wake of these high-profile cases, the New York Times is reporting that the FTC is planning to re-examine the practice of letting companies settle without admitting guilt.

One of the driving forces around any potential changes appears to be FTC...

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