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#FacebookStock : Facebook stock sinks after FTC launches probe of data scandal

Facebook (FB) stock sank on Monday after the Federal Trade Commission announced it was investigating the company’s data privacy practices and a number of privacy groups filed lawsuits.

The FTC confirmed that it was looking into the social media giant’s protection of user data, saying it takes reports that data was improperly obtained “very seriously.”

The company’s stock initially plummeted on the news, falling more than 5 percent. By 1:00 p.m. the stock had bounced back but was still down nearly 2 percent. Shares of Facebook are down more than 15 percent from a high of $185 earlier this month

 

Here’s the full statement from the FTC:

The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act. Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices

 

News Source : 

www.cbsnews.com

www.cnbc.com

 

 

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