- 37 US Attorneys Demand Facebook Responses to the Cambridge Analytica Scandal
- The US regulator FTC has also launched an investigation into the social networking company.
- The company has lost $ 70 billion in market value since the beginning of the scandal.
- CEO Mark Zuckerberg has now been invited to appear before a congressional committee.
The leading US consumer protection agency and lawyers from 37 states have put pressure on social conditions on Facebook on Monday Network allows data of 50 million users in the hands of political advice.
The US Federal Trade Commission has taken the unusual step of opening an investigation into the company – which it usually does only in cases of high public interest – with media reports that raise "significant privacy concerns" practices from Facebook. "
On the same day, a non-partisan coalition of 37 prosecutors wrote to Facebook, demanding that Cambridge Analytica consultancy use them for American and British voters to learn more about the company's role in manipulating user data in narrow elections
"These revelations raise many serious questions about the policies and practices of Facebook and the processes that make it work," the letter said. "We need to know that users can trust Facebook. With the information we have now, our confidence is broken. "
Facebook shares fell by as much as 6.5 percent, dropping below $ 150 for the first time since July 2017, before resuming losses on the day to close 0.4 percent at $ 160.06.
Shares have still fallen 13 percent since March 16, when Facebook first confirmed that user data was incorrectly passed to Cambridge Analytica has since lost more than $ 70 billion in market value.
The rebound in Monday's Facebook stock could be due to investors taking advantage of the lower stock price and the belief that recent regulatory reviews may ultimately be the long-term growth prospects of the company would not adversely affect, according to Wall Street analysts.
The FTC investigation examined more than if Facebook breached a consent statement made in 2011 with the FTC about its privacy practices, a person who was informed about the matter told Reuters.
If the FTC finds that Facebook has violated the terms of the consent decree, it has the power to pay it thousands of dollars a day, which could amount to billions of dollars.
"We continue to do our utmost to protect people's information," Facebook Deputy Data Protection Officer Rob Sherman said in a statement Monday. "We appreciate the opportunity to answer questions that the FTC might have."
Mark Zuckerberg was invited to appear at a congressional hearing
Legislators in the US and Europe continue to press Facebook and chief executive Mark Zuckerberg to explain the company's privacy practices.
The US Senate Judiciary Committee said Monday it had invited Zuckerberg and the CEOs of Alphabet and Twitter to testify at a privacy hearing on April 10.
The US House of Representatives on Energy and Commerce and the US Senate Commerce Committee have officially asked Zuckerberg to appear at a congressional hearing.
"Facebook's failure to protect sensitive user information likely violated certain binding obligations, but also fundamental norms and standards," said Democratic US Senator Richard Blumenthal, a member of the Senate for Trade, Science and Transport.
In Europe, the EU Justice Commissioner asked Facebook if the company is "absolutely sure" that the Cambridge Analytica incident can not be repeated.
Zuckerberg apologized last week for the mistakes the company had made and promised to restrict developers' access to user information under a privacy plan. He also regretted full-page ads in British and US newspapers.
"That was a breach of trust, and I'm sorry we did not do that at the time," Zuckerberg said in the ads. "We're taking steps now to make sure that does not happen again."
Some Advertisers Are Now Leaving Facebook
His apologies could not quell dissatisfaction. The German Minister of Justice said the pledges of Facebook are not enough.
"In the future, we will have to regulate companies like Facebook much stricter," said Katarina Barley after talks to which she had summoned Facebook managers, including European Public Affairs chief Richard Allan.
Advertisers and users are also unhappy.
U.S. Car parts maker Pep Boys stopped all advertising on Facebook on Monday, while wireless speaker maker Sonos announced in a blog post that it will remove advertising from Facebook, Instagram, Twitter and Twitter for a week.
The internet company Mozilla Corp., Germany's second largest bank, Commerzbank AG and the British advertising group ISBA, discontinued advertising on Facebook last week.
Opinion polls released on Sunday in the US and Germany doubt people's trust in Facebook.
According to a Reuters / Ipsos poll released on Sunday, less than half of Americans trust Facebook to comply with US data protection laws, while Bild am Sonntag, Germany's best-selling Sunday newspaper, fears 60 percent of Germans fear Facebook and other social networks have a negative impact on democracy.