Back in 2019, when Facebook—now known as Meta Platforms, Inc.—was threatened with major repercussions. Retaliation against whistleblowing employees In July 2019, the Federal Trade Commission (FTC) penalized the company $5 billion for conspicuous consumer privacy violations. The large fine stemmed from the company’s history of repeated privacy violations. These mistakes opened them up to legitimate doubts as to whether they truly safeguard user information.
The FTC’s lawsuit against Facebook was a pivotal victory in this long-running and still-unfolding drama of the fight for personal data privacy and consumer protection. Because at the time, Facebook’s practices were under unprecedented scrutiny, making it politically imperative for the agency to take a hard line. FTC Chairman Andrew Ferguson emphasized the commission’s commitment to safeguarding ordinary Americans, stating, “The Trump-Vance FTC is committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay.”
This violation of basic privacy is what led to Facebook’s recent high-profile fine. At the same time as this announcement, Amazon is facing criticism for its Prime membership program. Amazon’s original Prime program in 2005. Now, it serves over 200 million members worldwide and brings in billions of dollars a year to the company. The $139 annual membership provides numerous benefits including, of course, free two-day shipping and access to a competitive streaming video service.
It means that Amazon could soon find itself on the legal defensive. If the FTC prevails in the current case, three top executives could be found personally liable. On Tuesday, lawyers began the opening arguments in this landmark case. They underscored the role of tech companies to be better stewards of consumer rights and privacy.
The consequences of each of these cases reach far beyond just monetary damages. Together, they demonstrate that regulators are finally making tech firms accountable for this kind of dangerous behavior. As seen in Facebook’s terrible past violations and currently with Amazon, the pendulum between innovation and consumer trust can swing both ways.