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 12,2020

Apr 12: India and other South Asian countries are likely to record their worst growth performance in four decades this year due to the coronavirus outbreak, the World Bank said on Sunday.

The South Asian region, comprising eight countries, is likely to show economic growth of 1.8 per cent to 2.8 per cent this year, the World Bank said in its South Asia Economic Focus report, well down from the 6.3 per cent it projected six months ago.

India's economy, the region's biggest, is expected to grow 1.5 per cent to 2.8 per cent in the fiscal year that started on April 1. The World Bank has estimated it will grow 4.8 per cent to 5 per cent in the fiscal year that ended on March 31.

"The green shoots of a rebound that were observable at the end of 2019 have been overtaken by the negative impacts of the global crisis," the World Bank report said.

Other than India, the World Bank forecast that Sri Lanka, Nepal, Bhutan and Bangladesh will also see sharp falls in economic growth.

Three other countries - Pakistan, Afghanistan and the Maldives - are expected to fall into recession, the World Bank said in the report, which was based on country-level data available as of April 7.

Measures taken to counter the coronavirus have disrupted supply chains across South Asia, which has recorded more than 13,000 cases so far - still lower than many parts of the world.

India's lockdown of 1.3 billion people has also left millions out of work, disrupted big and small businesses and forced an exodus of migrant workers from the cities to their homes in villages.

In the event of prolonged and broad national lockdowns, the report warned of a worst-case scenario in which the entire region would experience an economic contraction this year.

To minimize short-term economic pain, the Bank called for countries in the region to announce more fiscal and monetary steps to support unemployed migrant workers, as well as debt relief for businesses and individuals.

India has so far unveiled a $23 billion economic plan to offer direct cash transfers to millions of poor people hit by its lockdown. In neighbouring Pakistan, the government has announced a $6 billion plan to support the economy.

"The priority for all South Asian governments is to contain the virus spread and protect their people, especially the poorest who face considerable worse health and economic outcomes," said senior World Bank official Hartwig Schafer.

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Agencies
March 29,2020

A shrimp seller at the wet market in the Chinese city of Wuhan believed to be the centre of the coronavirus pandemic, may be the first person to have tested positive for the disease, a media report said on Saturday.

The report by the London-based Metro newspaper said that 57-year-old woman, named by the Wall Street Journal as Wei Guixian, was selling shrimp at the Huanan Seafood Market when she developed what she thought was a cold last December.

Chinese digital news outlet, The Paper has said that she may be epatient zero'.

Wei was told by doctors her illness was "ruthless" and other workers at the market had come to the Wuhan Union Hospital with the same symptoms, the Metro newspaper report quoted the outlet as saying.

"Every winter, I suffer from the flu, so I thought it was the flu," the woman was quoted as saying by The Paper news outlet.

The shrimp seller added that she believed she contracted the coronavirus from the shared toilet in the market.

She said the fatal disease would have killed fewer people if the government had acted sooner.

Wuhan Municipal Health Commission has confirmed that Wei was among the first 27 people to test positive for the coronavirus.

It said she was one of 24 cases with direct links to the market, the Metro newspaper reported.

Though Wei may be "patient zero", it does not mean she is the first person to have contracted the virus, added the Metro report.

Chinese researchers have claimed that the first person diagnosed with the airborne virus had no contact with the seafood market and was identified on December 1, 2019.

Wei was later quarantined when a connection was made between the bug and the market before recovering in January.

As of Saturday, the global number of coronavirus cases stood at 104,837 with 27,862 deaths, according to the latest update by the Washington-based Johns Hopkins University.

The US has the highest number of cases at 104,837, followed by Italy 86,498 and China 81,948.

Italy has recorded the highest number of fatalities with 9,134 deaths, followed by Spain and China, at 5,138 and 3,299, respectively.

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News Network
April 23,2020

Geneva, Apr 23: The World Health Organisation (WHO) on Wednesday (local time) said that the COVID-19 crisis will not end any time soon, with several countries only in the initial stages of the fight against the virus.

"Make no mistake, we have a long way to go. Coronavirus will be with us for a long time. There is no question that stay at home orders and other physical distancing measures have successfully suppressed transmission in many countries," WHO chief Tedros Adhanom Ghebreyesus said in a press conference.

"Most countries are in the early stages of their epidemics. And some, which were affected early in the pandemic, are now starting to see a resurgence in the number of cases," he added.

COVID-19 has infected more than 2.6 million people around the world and a total of 1,83,027 people have died due to coronavirus, according to data from US-based Johns Hopkins University.

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