Legal Issues of the Facebook Company

Subject: Case Studies
Pages: 3
Words: 876
Reading time:
4 min
Study level: College

Mark Zuckerberg to Be Added To Facebook Privacy Suit – The New York Times. (2021). Mark Zuckerberg will be added to a Facebook privacy lawsuit. Web.

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Facebook is marred with different legal issues that continue to impact the operational processes. The causes of these issues are diverse given wider association and continuous mergers with other tech and non-tech companies. Every company operating both locally and internationally has to comply with the set laws and regulations that are beneficial to both the consumers and other businesses. However, Facebook, in several occasions, has failed to comply with the set regulations, particularly those involving data privacy. For instance, in the recent years, Facebook has been on the news for the mishandling of user data. The lawsuit alleges that Facebook has been allowing third-party apps to access personal information of users without their consent. There has also been claims that Facebook has failed to disclose to users about the sharing of their data with third parties.

There are many causes of the legal issues facing Facebook. A few of the most notable ones are as follows: -Lack of User Consent: One of the primary issues that has caused Facebook to face legal trouble is their policies around user consent. In particular, it has been alleged that the company did not properly obtain user consent for certain purposes, such as data sharing between Facebook and third-party companies. -Cambridge Analytica Scandal: Another major issue that Facebook has faced in recent years is the Cambridge Analytica scandal. This scandal involved a data mining firm that had access to private user data from millions of Facebook profiles without users’ consent. This raised serious questions about Facebook’s ability to protect user information.

Between June 2021 and February 2022, several articles were published discussing the various legal issues facing Facebook. For example, on October 10th, 2021, Reuters published an article discussing how Facebook was being sued by the state of Washington over the alleged failures to protect user data (Mark Zuckerberg to Be Added to Facebook Privacy Suit – The New York Times, 2021). This was due to the massive breach of security that occurred in late 2020, where hackers were able to gain access to user data from millions of accounts. It remained unclear as to what kind of damages the state was seeking. However, this could be a major blow to Facebook as they continue to try and rebuild their image after the Cambridge Analytica scandal.

There are a few potential legal issues that could arise from failures to protect user data. One issue could be negligence- if a company fails to take reasonable steps to protect user data, they may be liable for any damages that result. Another issue could be invasion of privacy- if unauthorized individuals gain access to user information, the users may have a claim for invasion of privacy (Mark Zuckerberg to Be Added to Facebook Privacy Suit – The New York Times, 2021). Finally, companies could also face regulatory penalties for failing to protect user data. Protection of user data is a potential legal issue faced by different tech companies particularly in the current environment. In fact, there have been a number of class action lawsuits filed against companies whose user data was compromised in recent years including Facebook Company.

Explanation of the Law

These lawsuits typically allege that the company failed to implement appropriate security measures to protect the data, and that as a result, the company’s customers suffered damages. Therefore, if a company does not take appropriate steps to protect user data, they are always at risk for a class action lawsuit. Also, it is important to note, however, that each case is unique and depends on the specific facts surrounding the breach. There are a number of laws surrounding the protection of user data. In the United States, these include the Health Insurance Portability and Accountability Act (HIPAA), the Family Educational Rights and Privacy Act (FERPA), and the Children’s Online Privacy Protection Act (COPPA). These laws require organizations to take steps to protect user data from unauthorized access, use, or disclosure. They also require organizations to provide notification to affected users in the event of a data breach.

The impacts of laws surrounding failures to protect user data on Facebook’s business are significant. For example, Facebook may face increased government scrutiny and regulation in the wake of this incident, which could limit the company’s ability to collect and use user data going forward. Additionally, Facebook may experience a decline in user trust and engagement, which could lead to a decrease in advertising revenue. Overall, these events are likely to have a negative impact on Facebook’s bottom line.

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Discussion on Why the Article is of Great Interest

The article is interesting because it underscores the growing concern over how technology companies handle our personal data. It also raises questions about what role, if any, government should play in regulating these companies. The article is important because it could set a precedent for how other states decide to handle Facebook’s recent privacy breaches. If Facebook is found guilty, it could face significant fines and be forced to change its data-collection practices.

Reference

Mark Zuckerberg to Be Added To Facebook Privacy Suit – The New York Times. (2021). Mark Zuckerberg will be added to a Facebook privacy lawsuit. Web.