Cambridge Analytica CEO Suspended, and the FTC Probes Facebook
Cambridge Analytica suspended its CEO Alexander Nix Tuesday after an undercover recording showed him bragging about illegally influencing political campaigns.
The firm was already under fire for its role in the Facebook data scandal. Many of that company’s top executives, including CEO Mark Zuckerberg, have stayed silent the last few days and even skipped out on a company-wide meeting Tuesday.
These two strands together indicate potential turmoil at the top of both companies, according to Jesse Byrnes, Associate Editor of The Hill.
“I think we’re seeing the gravity of the issue playing out now,” he told Cheddar. “We’re seeing lawmakers...calling for the top executives to make public appearances and to be answering questions.”
Late last week, news broke that data company Cambridge Analytica had used Facebook to collect data on millions of Americans without their permission. It then used that information to create personality profiles which were allegedly passed on to President Donald Trump’s campaign team before the 2016 election.
Its transgressions may have surpassed that -- in a video from Britain’s Channel 4 news, Nix talked about entrapping politicians with sex workers and his willingness to take bribes. The exec further boasted about the company’s role in electing Trump.
Also on Tuesday, Facebook came into the crosshairs of the Federal Trade Commission, which launched a probe into how the social media company used data from Cambridge.
“[They’re] going to be interested to see if Facebook allowed Cambridge Analytica to access this information and...whether they were at least knowledgeable about this,” said Byrnes.
Facebook said in a statement that in 2015 it asked Cambridge Analytica to delete all the data it had collected. It denied it knew Cambridge ignored that request and so suspended the company from its platform.
Not only does this controversy add to questions about Facebook’s privacy and data protection policies, it’s also given rise to the #DeleteFacebook campaign, which some say could eventually gain traction.
“I think people are going to reach a moment where the straw kind of breaks the camel’s back,” said Damon Beres, Executive Editor at Mashable. “We’ve been hearing so much about all these bad things that are happening because of Facebook...I would not be surprised if eventually people say enough is enough.”
Investors may be nearing that breaking point too. Facebook’s stock continued its downward trajectory on Tuesday, slipping another 2.5 percent after Monday’s near seven percent drop.
For the full interview, [click here](https://cheddar.com/videos/facebook-under-fire-what-the-u-s-could-learn-from-the-eu).
President Biden and Federal Reserve chair Jerome Powell meet at the White House today for the first time since Powell's renomination to the position. The President and the Fed Chair discussed the economy and historically high inflation, as new data shows inflation may be cooling slightly. Morning Consult economic analyst Jesse Wheeler joins Cheddar News' Closing Bell to discuss how the Biden administration at the U.S. central bank can work together to combat soaring prices for American consumers.
In the second part of Cheddar's talk with Governor Asa Hutchinson, the Republican from Arkansas discussed his state's abortion trigger law and the overturning of Roe v. Wade, the Texas law that would prevent social media platform moderation currently being held up by the U.S. Supreme Court, and rumors of his 2024 presidential run. "I did go to New Hampshire. I am testing the waters out there, so no decision at this point. But we're looking at it," he said, noting that if former President Donald Trump runs, it would not affect his own decision.
Cheddar Politics looks at the ongoing efforts to pass meaningful gun safety laws in both Chambers of Congress following multiple mass shootings. Lisa Hagen, senior political reporter for U.S. News and World Report, helps break down why Senators are hopeful that a modest bipartisan gun safety package might be able to overcome a filibuster.
Join Cheddar News as we break down the top headlines this morning including updates on the Tulsa medical center shooting, Johnny Depp V. Amber Heard verdict, and Democrats push for gun control reform.
After two subway shootings in two months and the more recent mass shootings in Uvalde, Texas, and Buffalo, New York, Mayor Eric Adams is calling for gun detection scanners to be installed in New York City subways. The tech would be similar to that used in sporting arenas, however, experts note multiple difficulties with such a setup including the need for nearby human operators.
Catching you up on what you need to know on Wednesday, June 1, 2022, House lawmakers hold an emergency hearing on gun control measures in the wake of the Uvalde shooting, the Supreme Court temporarily blocks Texas' law stopping social media moderation, and the James Webb Space Telescope gets a new mission.
With the baby formula in the United States surging to an out-of-stock rate of 70 percent, the FDA has given Abbott permission to reopen its Michigan plant amid the crisis and authorized foreign imports. Professor Peter Pitts, a former FDA associate commissioner and current president of the Center for Medicine in the Public Interest, joined Cheddar News to discuss the ongoing shortage and its wide impact. “As difficult as things is in urban areas, they’re even worse in small communities and tribal areas where parents can't just go to the next store on the corner," he said. Pitts also noted that the Abbott factory was a "disaster" prior to its shutdown and that it would have been "regulatory malpractice" to have left it open.
Cheddar's Megan Pratz reports from the ground in Uvalde, Texas where the community's grief and frustration with lawmakers and police officers grows as more details emerge.
