Facebook users who were impacted by the Cambridge Analytica data scandal can finally breathe a sigh of relief as the social media giant has finally settled with the U.S. Federal Trade Commission (FTC). The company has agreed to pay a whopping $5 billion fine to settle a complaint filed by the FTC in 2019, along with several other lawsuits from state and federal regulators.
This major settlement is said to be the largest in FTC’s history and has sparked a lot of interest amongst users who were affected by the data breach. Many are eagerly waiting for the payout date to claim their share of the settlement. In this article, we will discuss all the details related to the Facebook privacy settlement and its payout date.
What led to the Facebook privacy settlement?
In 2018, it came to light that British political consulting firm, Cambridge Analytica, had harvested the data of 87 million Facebook users without their consent. The company had access to a wide range of personal data including names, locations, and in some cases, even private messages. This data was then used for political advertising and to manipulate voter opinions.
This revelation sparked an uproar amongst Facebook users and raised concerns about the company’s privacy policies. In response, Mark Zuckerberg, Facebook’s CEO, and other executives were heavily criticized for failing to protect user data. Several investigations were launched, and Facebook faced multiple lawsuits from both state and federal regulators.
In July 2019, the FTC filed a complaint against Facebook, alleging that the company had violated the terms of a previous settlement reached in 2012. The FTC accused Facebook of deceiving its users by allowing third-party apps to access their data without their knowledge or consent. The complaint also highlighted the company’s failure to safeguard users’ personal information, which led to the Cambridge Analytica scandal.
What is the settlement agreement?
After months of negotiations, Facebook agreed to settle the FTC’s complaint by paying a record-breaking $5 billion fine. In addition to the fine, the settlement also requires Facebook to make significant changes to its privacy practices and to establish an independent privacy committee on its board of directors. The company will also be required to submit quarterly reports to the FTC regarding its compliance with the new privacy measures.
Aside from the FTC’s complaint, Facebook has also reached settlements with several other regulators including the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). These settlements require Facebook to pay an additional $100 million fine to the SEC for misleading investors about its privacy practices and $43 million to the DOJ for failing to disclose the Cambridge Analytica scandal.
What is the payout date for the settlement?
The FTC has not yet announced an official payout date for the Facebook privacy settlement. However, it is expected to be sometime in 2020. According to the settlement agreement, Facebook is required to pay the fine within 90 days of the settlement becoming final. The fine was approved by a federal judge on April 25, 2020, which means that Facebook has until June 24, 2020, to make the payment.
Once the payment is made, the FTC will begin the process of distributing the fine amongst the affected Facebook users. The settlement states that the amount each user can claim will depend on the number of individuals who make a valid claim. If the number of claims exceeds the amount of the fine, the affected users will receive a proportionate share. However, if the number of claims is less than the fine, Facebook will have to pay the remaining balance to the U.S. Treasury.
How can users claim their share of the settlement?
Facebook will be responsible for notifying eligible users about the settlement and their right to claim a portion of the fine. Users will have to submit a claim form, which will be available on a dedicated website. The website will also have information on how to submit a claim and what documents might be required. Users who were affected by the Cambridge Analytica scandal can expect to receive an email or notification from Facebook with a link to the claim form.
It is important to note that only users who were impacted by the data breach are eligible for compensation. The settlement defines affected users as those whose data was accessed by the app “This Is Your Digital Life” before May 2015, as well as their friends whose data might have been shared with Cambridge Analytica.
Facebook Settlement Claim
The Facebook settlement claim refers to the legal action against the social media giant for its handling of user data and privacy violations. The claim was settled for $650 million in 2020, with a majority of the funds going towards compensating affected users. This case highlights the importance of protecting user privacy and the consequences for companies that fail to do so.
Facebook Settlement Checks Status
The Facebook settlement checks status can be easily checked on the official website of the settlement administrator or through a designated toll-free number. Users who were part of the class action lawsuit and are eligible for a payment will receive a notification via email or regular mail. The checks are expected to be distributed in a timely manner, but exact dates may vary. Users can also track the status of their check by providing their claim number or contact information.
Conclusion
The Facebook privacy settlement is a significant step in holding the social media giant accountable for its mishandling of user data. In addition to the hefty fine, the settlement’s requirements ensure that Facebook makes necessary changes to its privacy practices, which will protect users in the future. While the payout date is yet to be announced, users who were affected by the Cambridge Analytica scandal can expect to receive their share of the settlement soon. It is important for users to keep an eye out for any updates and submit a claim form to receive their compensation. Let’s hope that Facebook learns from its mistakes and prioritizes user privacy in the future.
FAQs
1. What is the Facebook privacy settlement and why is it important?
The Facebook privacy settlement is a legal agreement between the social media company and regulators, settling multiple lawsuits regarding the mishandling of user data. It is important because it holds Facebook accountable for their actions and aims to protect user privacy in the future.
2. What is the payout date for the Facebook privacy settlement and how will it be distributed?
The official payout date has not been announced yet, but it is expected to be sometime in 2020. The fine will be distributed amongst affected users, with the amount depending on the number of valid claims made.
3. Who is eligible to receive compensation from the Facebook privacy settlement?
Users whose data was accessed by the app “This Is Your Digital Life” before May 2015, as well as their friends whose data was shared with Cambridge Analytica, are eligible to make a claim and receive compensation.
4. How can users check the status of their Facebook settlement checks?
The status of the checks can be checked on the official website of the settlement administrator or through a toll-free number. Users will also receive email or regular mail notifications once the checks are distributed.
