The Federal Trade Commission officially launched an investigation into Facebook’s data practices Monday.
The agency is exploring whether the social media platform violated an agreement from back in 2011 by failing to abide by its privacy promises.
But Axios managing editor Kim Hart says the matter isn’t cut and dry.
“Here’s the problem -- there are no real rules on the books that dictate how data from a company like Facebook can be shared or sold or used,” she said in an interview on Cheddar.
“As long as they are abiding by the privacy policies that they put out and the privacy standards that they tell consumers that they’re going to use, they’re in pretty good stead.”
Seven years ago, Facebook reached a settlement with the FTC over allegedly tricking users into believing that they could keep their data on the platform private when it was in fact open to third party apps.
Under that agreement, Facebook was required to “obtain periodic assessments of its privacy practices by independent, third-party auditors for the next 20 years,” according to an official statement from the FTC.
The increased scrutiny comes at a time when Facebook’s popularity is waning. A recent Reuters/Ipsos poll shows that just 41 percent of Americans trust the company will protect their privacy, compared to 66 percent who trust Amazon and 62 percent for Google.
A separate Axios study found that Facebook’s favorability fell by 28 points in just the past five months.
“It’s a pretty stunning drop that we saw,” said Hart. “It fell twice as much as the other tech giants did.”
This onslaught of negative coverage comes after news that data company Cambridge Analytica harvested data on tens of millions of Americans off of Facebook without their permission. It then sold that information to President Trump’s campaign team in 2016.
Since the revelation, Facebook shares have fallen by 13 percent. Initial news of the FTC investigation sent shares down an additional 6 percent Monday, but they recovered for a slight gain by the end of the day.
For the full interview, [click here](https://cheddar.com/videos/facebook-under-fire-why-its-favorability-is-plummeting).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
