Facebook survey could hold Mark Zuckerberg responsible for privacy, sources say

Federal regulators investigating Facebook for mishandling the personal information of its users turned to the company's general manager, Mark Zuckerberg, to explore his earlier statements about privacy and whether to look for a new and increased supervision of his leadership.

Discussions on how to hold Zuckerberg accountable for Facebook's data errors took place as part of extensive discussions between the Federal Trade Commission and Facebook that could resolve the government's investigation, which is over a year old , according to two people familiar with the discussions. Both asked to remain anonymous because the FTC's investigation is confidential under the law.

Such an initiative could create new legal, political and public relations issues for one of Silicon Valley's best-known business leaders – and who cares about its image. Zuckerberg is the co-founder, managing director, chairman of the board and the most powerful shareholder of Facebook. A sanction from the federal government would be considered a rare reprimand and the technology giant's historic ethic of "moving fast".

Often, the FTC does not target senior executives in cases where it finds that a company's business practices have violated the privacy of web users. Critics say Zuckerberg's targeting could lead other tech giants to understand that the agency is willing to ask executives to report directly on reprehensible wrongdoing by their company.

"It was no longer enough to pretend that it was an innocent platform and the fact of quoting Mark in the context of a large-scale enforcement action would have adverse consequences for him." his country, "said Roger McNamee, one of the first investors in the company and one of Zuckerberg's biggest critics.

In previous Facebook surveys, the US government had chosen to spare Zuckerberg the toughest exams. The documents obtained from the FTC under the federal open registry rules indicate that the agency had considered, and then relinquished, to put Zuckerberg under direct control during its last settlement with Facebook in 2011. S & # 39; he had done so, Zuckerberg could have faced fines for future privacy breaches. .

Asked about the negotiations, Facebook said in a statement that he "hopes[s] to reach a just and appropriate resolution. "The FTC refused to comment on this story.

The FTC opened a Facebook survey in March 2018 following reports that Cambridge Analytica, a political consulting firm, inaccurately accessed data from about 87 million social networking site users. The federal inquiry focused on whether Facebook had violated a 2011 agreement with the FTC with the FTC, demanding that the company improve its privacy practices. Since then, Facebook has recognized a series of other privacy breaches, including a Thursday for mishandling the passwords of millions of users on Instagram, its photo-sharing service.

When appearing before Congress last year, Zuckerberg sought to take personal responsibility for a whole slew of recent missteps, including the entanglement of Facebook with Cambridge Analytica. "I started Facebook, I manage it, and I'm responsible for what's going on here," he told lawmakers. But Facebook's chief has always maintained that the company had not committed a "violation of the consent decree" that she had struck with the FTC.

The settlement of this federal investigation, which is now over a year old, could force Facebook to make significant concessions, including the payment of a fine of up to billions of dollars, had already reported the post. This could also lead to new obligations for Zuckerberg. One of the ideas that has been raised may require him or another officer to periodically certify to the board of directors the company's privacy practices, said two people familiar with the company's privacy practices. file, as well as increased oversight by the FTC.

It is unclear whether the FTC and Facebook are still considering such a requirement or whether they have reached an agreement on these or other outstanding issues. But Facebook has been fighting hard to protect Zuckerberg as part of the negotiations, said one of the sources close to the investigation. Facebook or the FTC could choose to opt out of the discussions, which would ensure that the case would go to court.

The idea of ​​holding Zuckerberg responsible – and even imposing it on sanctions for mismanaging user data by Facebook – has gained strength in Washington. On Thursday, Democratic Senator Richard Blumenthal (Conn.) Said that the company's top executive "was not only aware of the invasion of consumer privacy by Facebook, he's not going to get it." approved and publicly downplayed the legitimate concerns. "

"Holding Mark Zuckerberg and the other Facebook leaders personally responsible and guilty of other wrongdoings would send a powerful message to business leaders across the country: you will pay a heavy price to circumvent the law and deceive the consumers, "said Blumenthal.

Some of the FTC's decision-makers have also expressed support for executive sanctions when their companies are under investigation. In a memo dated May 2018, Democratic Commissioner Rohit Chopra said that the agency "should hold individual officials accountable for violations of the orders in which they participated, even if these individuals were not named in the initial orders ". he did not respond to requests for comment.

Zuckerberg could still largely escape the consequences of the negotiations with the FTC. If he did, it would not be the first time. More than eight years ago, when the FTC met its initial settlement with Facebook, the agency's staff asked if it was necessary to target Zuckerberg personally. An unpublished, undated, draft version of the FTC's consent order against Facebook, obtained by mail through an application under the Freedom of Information Act , explicitly designated Zuckerberg as a respondent – which meant that he would have faced increased federal oversight and the risk of fines and other penalties. in case of misstep in privacy.

In the end, however, the FTC removed any mention of it from a version of the shared order around April 2011, according to e-mail records obtained from the agency under the Archives Act. open. The agency also considered and removed a provision of its quick settlement that would have forced Facebook to pay an unspecified sum to the government, according to the archives. The form of punishment, called disgorgement, forces a company to return ill-gotten monetary gains. The draft licensing decree contained only one "xxx" instead of an exact amount. This wording was finally removed when the FTC announced its agreement with Facebook in November 2011.

This time, veterans of the FTC encouraged the agency to target Zuckerberg directly, putting him personally under control and subjecting him to additional federal oversight. David Vladeck, who held the position of director of the Consumer Protection Bureau at the FTC in 2011, criticized the company this week because she "did not take this first decree of the company seriously." ;authorization".

"I hope any future order will appoint Zuckerberg," he said, adding that it "adds to the pressure on the company to hold the CEO accountable."

Negotiated in 2011, the FTC's consent decree with Facebook asks the company to be more forthright with consumers about the data it collects and give them permission before they replace their existing privacy settings. It is also forbidden for Facebook to give a false picture of what it does with user data, while subjecting itself to 20 years of confidentiality checks.

Discussions between Facebook and the FTC have intensified in recent weeks as the agency's investigation has passed its first anniversary. Senior Facebook officials, including Advocate General Colin Stretch, met with Democratic and Republican commissioners in March, according to two additional sources familiar with the agency's work but unauthorized to discuss the issues. a private investigation.

While the FTC is investigating Facebook, state attorneys general have launched their own investigation. The District Attorney General of Columbia has filed a lawsuit for violation of privacy against the company.

Other agencies, including the Securities and Exchange Commission, investigated Facebook's relationship with Cambridge Analytica. And a federal grand jury sent subpoenas in March to two tech companies with whom Facebook had entered into data-sharing agreements, the New York Times reported, noting that the target of such a criminal investigation remains blurred.