Facebook to pay a whopping $5 billion penalty in final settlement with FTC

Agencies
July 24, 2019

Jul 2: The Federal Trade Commission (FTC) has officially penalized Facebook a groundbreaking $5 billion, the largest in FTC history.

According to a Wednesday press release from the FTC, the social network giant will also have to submit to new restrictions, as well as a modified corporate structure that will hold the company accountable for decisions made about users’ privacy.

“Despite repeated promises to its billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumers’ choices,” said FTC Chairman Joe Simons in the press release. “The magnitude of the $5 billion penalty and sweeping conduct relief are unprecedented in the history of the FTC. The relief is designed not only to punish future violations but, more importantly, to change Facebook’s entire privacy culture to decrease the likelihood of continued violations. The Commission takes consumer privacy seriously, and will enforce FTC orders to the fullest extent of the law.”

Additionally, the order imposes further privacy requirements. These include greater oversight over third-party apps, prohibiting the use of telephone numbers to enable a security feature,  providing clear and conspicuous notice of the use of facial recognition and user consent for this feature, the establishment of a data security program, prohibiting the company from asking for email passwords from new users to other services, and encryption of passwords.

This settlement is a result of violations Facebook made from a previous settlement with the FTC in 2012. Among these violations, the FTC alleges that Facebook shared user data with third-party app developers, misrepresented users’ ability to control the use of facial recognition and used deceptive practices when collecting users phone numbers for a security feature, which includes advertising purposes.

Facebook will be required to designate compliance officers who will be responsible for the new privacy program. The social network will also have to implement an independent privacy committee of Facebook’s board of directors, which will be charged with creating greater accountability. These new compliance officers will create quarterly reports which will be shared with Facebook CEO Mark Zuckerberg and the FTC.

What’s groundbreaking about this settlement is that it is almost 20 times greater than the world’s largest privacy/data security penalty to date. According to the press release, the second-highest penalty in privacy enforcement actions was issued in the case of the Consumer Financial Protection Bureau (CFPB) and States v. Equifax, which was $275 million.

“This settlement’s historic penalty and compliance terms will benefit American consumers, and the Department expects Facebook to treat its privacy obligations with the utmost seriousness,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division in the FTC’s press release.

Digital Trends reached out to Facebook for comment, but has yet to receive a response.

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Agencies
June 22,2020

New delhi, Jun 22: As consumer sentiment runs high amid growing chorus for boycotting Chinese goods in the country, the fluid market situation offers new opportunities for various smartphone makers, especially the non-Chinese ones like Samsung, Apple, Nokia, Asus and others, to realign their strategies and regain the lost market share in the face of fierce Chinese competition.

The challenge here would be not to look "opportunistic" and leverage the current explosive situation on just riding on the anti-Chinese sentiment but to offer real challenges in the form of top-end devices with solid internals at affordable price points, feel industry experts.

"The current market conditions in India are fluid and open up new opportunities for smartphone original equipment manufacturers (OEMs) to focus and leverage," Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), told IANS.

In the first quarter (January-March) this year, Samsung's shipments were driven by its upgraded A and M series (A51, A20s, A30s, and M30s).

According to Counterpoint Research, Samsung managed to hold third position in Q1 2020 due to launches across several price tiers, especially in the affordable premium segment (S10 Lite, Note 10 Lite).

The South Korean smartphone maker last week announced a Rs 4,000 price drop on its popular Galaxy Note10 Lite smartphone that will now cost Rs 37,999 (6GB variant).

Earlier this month, Samsung launched two new smartphones, Galaxy M11 and Galaxy M01, with powerful batteries under Rs 15,000 in India.

Galaxy M11 comes in two variants. The 3GB+32GB will be priced at Rs 10,999 while the higher 4GB+64GB variant will be available for Rs 12,999.

Samsung has also launched an affordable Galaxy A21s smartphone with quad-camera system and 5,000mAh battery at a starting price of Rs 16,499.

Also read: Boycott China? OnePlus 8 Pro sold out within minutes of going on sale

On the other hand, Apple grew a strong 78 per cent YoY driven by strong shipments of iPhone 11 and multiple discounts on platforms like Flipkart and Amazon in Q1, according to Counterpoint.

Apple has also brought its cheapest yet powerful new iPhone SE that costs Rs 38,900 (64GB) in India with a special offer from HDFC Bank. The new iPhone SE is powered by the Apple-designed A13 Bionic, the fastest chip in a smartphone and features the best single-camera system ever in an iPhone.

According to Tarun Pathak, Associate Director, Counterpoint Research, consumer sentiments are running high and a section of users will look for alternatives, benefitting global and Indian brands.

"However, we do not think non-Chinese brands will run aggressive campaigns based on the situation as it might look like being opportunistic," Pathak told media.

It may actually let brands of Chinese origin try to run aggressive campaigns on their presence and scale.

"Some of these Chinese brands have been active in scaling up local value addition, creating jobs and investing in research and development," Pathak noted.

On Saturday, market leader Xiaomi said that it is "more Indian" than any other smartphone brand.

The company's India head Manu Kumar Jain said that the company's mobile phone R&D centre and product team is in India, it employs 50,000 people in the country, the entire leadership team is Indian and that the company pays its taxes in India.

Earlier, Realme India CEO Madhav Sheth who is also very active on social media said that Realme is an Indian startup.

In his latest episode of Ask Madhav' series on YouTube, Sheth said: "I can proudly say Realme is an Indian startup, which is now a global MNC (multinational corporation)".

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Agencies
January 16,2020

Claiming that e-commerce giants like Amazon import as much as 80 per cent of the items sold on their platforms, small manufacturers' body has said that their business models do not benefit local industry and are creating jobs of delivery boys only.

"Neither manufacturers nor traders are getting any benefit from the business models of Amazon and Flipkart because they largely import their products from China and Korea and sell here. Nearly 80 per cent of their products are imported," said Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME).

Bhardwaj said that the global e-commerce players generally source and sell products through their own preferred suppliers and as a result a large number of local manufacturers and traders get crowded out.

He listed out deep discounting and buying products from preferred companies as unfair practices.

"Even if they buy products from local suppliers the commission charged is very high," Bhardwaj said adding that the issues related to unfair practices have been raised with Commerce Ministry on multiple occasions.

FISME maintains that the technology-driven retail is way forward and one cannot be oblivious of the benefits it brings to consumers but at the same time the local industry can also not be ignored given its role in job creation.

"If both traders and local manufacturers are crowded out then how would the local industry survive and employment be generated?" asked Bhardwaj.

As Amazon Founder and CEO Jeff Bezos is currently on his three-day visit to India, the local traders are up in arms against the "unfair" trade practices of the tech giant. Delhi-based Confederation of All India Traders (CAIT) has launched a countrywide protest against the company and has organised protests across 300 cities.

In a setback to Amazon and Walmart-backed Flipkart, the fair market watchdog Competition Commission of India (CCI) has ordered probe into the business operations of both the companies on multiple counts including deep-discounts and exclusive tie-up with preferred sellers.

"For the first time some concrete step has been taken against Amazon and Flipkart who are continuously violating the FDI policy in indulging in a vicious racket of controlling and monopolising not only the e-commerce but even the retail trade as well," CAIT National Secretary General Praveen Khandelwal said after the CCI order.

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Agencies
May 10,2020

In the wake of the gas leak at a factory in Visakhapatnam, the National Disaster Management Authority (NDMA) has issued detailed guidelines for restarting industries after the lockdown and the precautions to be taken for the safety of the plants as well as the workers.

In a communication to all states and union territories, the NDMA said due to several weeks of lockdown and the closure of industrial units, it is possible that some of the operators might not have followed the established standard operating procedures.

As a result, some of the manufacturing facilities, pipelines, valves may have residual chemicals, which may pose risk. The same is true for the storage facilities with hazardous chemicals and flammable materials, it said.

The NDMA guidelines said while restarting a unit, the first week should be considered as the trial or test run period after ensuring all safety protocols.

Companies should not try to achieve high production targets. There should be 24-hour sanitisation of the factory premises, it said.

The factories need to maintain a sanitisation routine every two-three hours especially in the common areas that include lunch rooms and common tables which will have to be wiped clean with disinfectants after every single use, it added.

For accommodation, the NDMA said, sanitisation needs to be performed regularly to ensure worker safety and reduce the spread of contamination.

To minimise the risk, it is important that employees who work on specific equipment are sensitised and made aware of the need to identify abnormalities like strange sounds or smell, exposed wires, vibrations, leaks, smoke, abnormal wobbling, irregular grinding or other potentially hazardous signs which indicate the need for immediate maintenance or if required shutdown, it said.

At least 11 people lost their lives and about 1,000 others were exposed to a gas leak at a factory in Andhra Pradesh''s Visakhapatnam on May 7.

The incident took place after it restarted operations when the government allowed industrial activities in certain sectors following several weeks of lockdown.

The lockdown was first announced by Prime Minister Narendra Modi on March 24 for 21 days in a bid to combat the coronavirus threat. The lockdown was then extended till May 3 and again till May 17.

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