Facebook sued by Washington, D.C., over data breach accusations

Agencies
December 20, 2018

Dec 20: The attorney general for Washington, D.C., said on Wednesday the US capital city had sued Facebook Inc for allegedly misleading users about how it safeguarded their personal data, in the latest fallout from the Cambridge Analytica scandal.

The case joins several legal and regulatory proceedings that threaten to hit Facebook with significant penalties and increase its operating costs.

Authorities and consumer advocates have questioned whether Facebook's efforts on security, content moderation and cultural diversity have kept pace with the social responsibility it should have for its services, including WhatsApp and Instagram, which are essential communication tools for more than 2 billion people each month.

The world's largest social media company has drawn global scrutiny since disclosing earlier this year that a third-party personality quiz distributed on Facebook gathered profile information on 87 million users worldwide and sold the data to British political consulting firm Cambridge Analytica.

Washington, D.C., Attorney General Karl Racine said Facebook misled users because it had known about the incident for two years before disclosing it. The company had told users it vetted third-party apps, yet made few checks, Racine said.

"This continues a year of bad publicity and significant issues for, making it more likely that the US government will take action to penalize and/or regulate" it, said financial analyst Scott Kessler of CFRA Research. "Yet, we still see its fundamentals as healthy and valuation as attractive."

Facebook shares suffered their biggest drop since July 26, closing down more than 7 percent at $133.24 on Wednesday, extending a roughly five-month stretch since the company warned that profit margins would erode in coming years because of consumer and government pressure to better guard data and suppress objectionable content.

"Facebook could have prevented third parties from misusing its consumers' data had it implemented and maintained reasonable oversight of third-party applications, according to the lawsuit filed in the Superior Court of Washington, D.C., on Wednesday.

Facebook said in a statement, "We're reviewing the complaint and look forward to continuing our discussions with attorneys general in D.C. and elsewhere."

The court could award unspecified damages and impose a civil penalty of up to $5,000 per violation of the district's consumer protection law, or potentially close to $1.7 billion, if penalized for each consumer affected as is typical. The lawsuit alleges the quiz software had data on 340,000 D.C. residents, though just 852 users had directly engaged with it.

'CONFUSING SETTINGS'

Facebook offered separate privacy settings around 2013 to control what friends on the network could see and what data could be accessed by apps, enabling the quiz and other services to collect details about their users' Facebook friends without many of them realizing it, according to the lawsuit.

It further alleges Facebook misled users by allowing several partners, including mobile software maker BlackBerry, "to override Facebook consumers' privacy settings and access their information without their knowledge or consent."

The New York Times reported new details on Tuesday about the user data that remained available to such partners years after they had shut down the features that required them. Facebook acknowledged the lapse, but said that it has not found evidence of wrongdoing by those partners.

Racine criticized Facebook's "lax oversight and confusing privacy settings," telling reporters that Facebook had tried to settle the case before he filed suit, as is common during investigations of large companies.

He said that a lawsuit was necessary "to expedite change" at the Silicon Valley company.

Britain's data protection authority in July fined Facebook 500,000 pounds for the breaches of data in the Cambridge Analytica incident.

Since then, Facebook has disclosed a pair of security breaches involving profile data and posts of up to 29 million users and 6.8 million users, respectively.

At least six US states have ongoing investigations into Facebook, according to state officials.

In March, a bipartisan coalition of 37 state attorneys wrote to the company, demanding to know more about the Cambridge Analytica data and its possible links to US President Donald Trump's election campaign.

At the same time, the Federal Trade Commission took the unusual step of announcing an investigation into whether Facebook had violated a 2011 consent decree, exposing the company to a multi-billion dollar fine.

State attorneys general have found some success taking on technology companies over data privacy. Uber Technologies Inc in September agreed to pay $148 million as part of a settlement with 50 US states and Washington, D.C., which investigated a data breach that exposed personal data from 57 million Uber accounts.

Agnieszka McPeak, a professor at Duquesne University School of Law, said states will likely make claims similar to those of D.C., pressuring Facebook into a settlement that involves both a monetary fine and modified business practices.

If a company faces 51 separate actions around the country for deceptive practices, that can have a real impact, McPeak said.

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News Network
April 11,2020

Washington, Apr 11: China is considered a developing country, make the United States too a developing one, US President Donald Trump said on Friday, alleging that Beijing has taken advantage of his country.

"China has been unbelievably taken advantage of us and other countries. You know, for instance, they are considered a developing nation. I said well then make us a developing nation too,” Trump told reporters at his daily White House news conference on coronavirus.

The president was responding to a question on China.

“They get big advantages because they are a developing nation. India, a developing nation. The United States is a big developed nation. Well, we have plenty of development to do,” he said.

Reiterating that United States was taken advantage of by the World Trade Organization, Trump said the Chinese economy started booming after it joined WTO with the help of the US.

“If you look at the history of China, it was only since they went into the WTO that they became a rocket ship with their economy. They were flatlined for years and years,” he said.

“Frankly, for many, many decades. And it was only when they came into the WTO that they became a rocket ship because they took advantage of all -- I'm not even blaming them. I'm saying how stupid were the people that stood here and allowed it to happen,” he said.

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The Trump Administration will now allow that to happen, he said.

“If they don't treat us fairly, will leave. But now we're starting to win cases,” he said.

Alleging that China has taken advantage of the United States for 30 years, he said, China has taken advantage of the US through WTO and using rules that are unfair to the United States.

"They should have never been allowed it, this should have never been allowed to happen", he added.

“When China joined and was allowed to join under those circumstances the WTO, that was a very bad day for the United States because they have rules and regulations that were far different and far easier than our rules and regulations,” he said.

“Plus. They took advantage of them down to the last. China took advantage of them like few people would even think to take advantage of them and again they are considered right a developing nation,” he added.

The United States, he rued, is not considered a developing nation.

“The were given advantages (for being a developing nation). For many years China has ripped off the United States. Then I came along and right now, as you know, China is paying 25 percent," said Trump, adding that the US is now gaining "billions and billions and billions of dollars in tariffs from China”.

The US is not paying, he asserted.

“Not every country is China but China would devalue their currency and they would also pour out money and they essentially were paying most of those tariffs not us,” he said.

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News Network
May 1,2020

Washington, May 1: The United States on Thursday recorded 29,625 new coronavirus cases, and 2,035 deaths in the last 24 hours, according to Johns Hopkins University.

The total number of coronavirus cases has reached 1,069,534 and the death toll stands at 63,001, CNN reported.

The novel coronavirus has infected more than 3.2 million people and killed at least 233,000 globally, according to Johns Hopkins University.

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News Network
February 6,2020

Washington, Feb 6: The US has expressed concern over the current situation of religious freedom in India and raised the issue with Indian officials, a senior State Department official has said.

The remarks came in the wake of widespread protests held across India against the Citizenship Amendment Act (CAA).

The senior State Department official, on condition of anonymity, said that he has met with officials in India about what is taking place in the nation and expressed concern.

"We are concerned about what's taking place in India. I have met with the Indian foreign minister. I've met with the Indian ambassador (to express my concern)," the official, who was recently in India, told reporters on Wednesday.

The US has also "expressed desire first to try to help and work through some of these issues", the official said as Secretary of State Mike Pompeo launched a 27-nation International Religious Freedom Alliance.

"To me, the initial step we try to do in most places is say what can we do to be of help you work through an issue to where there's not religious persecution. That's the first step, is just saying can we work with you on this," the official said.

India maintains that the Indian Constitution guarantees fundamental rights to all its citizens, including its minority communities.

It is widely acknowledged that India is a vibrant democracy where the Constitution provides protection of religious freedom, and where democratic governance and rule of law further promote and protect fundamental rights, a senior official of the Ministry of External Affairs has said.

According to the CAA, members of Hindu, Sikh, Buddhist, Jain, Parsi and Christian communities who have come from Pakistan, Bangladesh and Afghanistan till December 31, 2014 following religious persecution there will get Indian citizenship.

The Indian government has been emphasising that the new law will not deny any citizenship rights, but has been brought to protect the oppressed minorities of neighbouring countries and give them citizenship.

Defending the CAA, Prime Minister Narendra Modi last month said that the law is not about taking away citizenship, it is about giving citizenship.

"We must all know that any person of any religion from any country of the world who believes in India and its Constitution can apply for Indian citizenship through due process. There's no problem in that," he said.

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