Cambridge Analytica deceived people over use of Facebook data: US regulators

The now-defunct British political consulting firm Cambridge Analytica deceived consumers about the collection of Facebook Inc data which was then used for targeting and profiling of people, U.S. regulators said on Friday. The order came after Facebook agreed in July to pay record-setting $5 billion fine to the FTC, in order to resolve a government probe into its privacy practices. The impact of the order is still not clear as Cambridge Analytica is out of business.

Out of Business

The agency order prohibits the British Consulting firm from misrepresenting the extent to which it protects the privacy and confidentiality of the personal information. The order also stops the consulting firm from participating in the E.U-U.S. Privacy Shield framework and other similar regulatory organisations. In a settlement which was reached earlier this year, Cambridge Analytica's former CEO Alexander Nix and app developer Aleksandr Kogan have agreed to delete or destroy any personal information they had collected. 

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The Federal Trade Commission found that the British firm engaged in deceptive practices relating to its participation in the EU-US Privacy Shield framework which is a pact on the cross border transfer of personal data. Accusations that Facebook violated a 2012 decree by inappropriately sharing information belonging to 87 Million users with Cambridge Analytica led to a probe by FTC into both technology giants. The company has also been accused of micro-targeting US voters with carefully tailored messages about trump helping in his victory in 2016 US presidential elections.

Facebook's own investigation discovered that some data from 87 million users across the globe had been compromised by the social networking firm. It also claimed the practices violated the social network's terms of service. Facebook did not immediately respond to a query on the FTC decision. Cambridge Analytica had claimed in 2018 that it had been ruined by numerous unfounded accusations which have made it impossible to keep the business afloat.

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( with inputs from agencies)