Facebook: Once Again In Privacy Policy Troubles


Facebook Inc. (NASDAQ:FB), the social networking giant and the raging bull on the bourses these days has once again got into troubles with regard to its privacy policy. Only a few days back the company had been asked to shell out close to $20 million as claims to users for unlawful usage of user images and information in third party advertising. In order to avoid any future troubles, the company had announced a change to its privacy policy. The change in policy, on the contrary, has landed the company in further trouble with the ‘Federal Trade Commission’ (FTC). The regulator has announced an investigation into Facebook’s new privacy practices in order to decide if the new practices breach/violate the agreement the company had signed with the regulators in 2011. The agreement requires Facebook to get consent of it's users before sharing/exposing their information to any new/third parties. There have been appeals to the regulator, made by a group of privacy organisations, claiming that the new practices violate the agreement. FTC has clarified that Facebook did not seek the regulator’s approval before making the changes to its privacy policy. This in itself has breached the agreement between the company and the regulator, as the agreement states that the company is subject to continuous oversight by the FTC. However Facebook claims that the new practices do comply with the agreement signed with the regulator and fall well within the boundaries of the 2011 agreement.

Even as the privacy issues have been troubling the company, the investors seem upbeat about the stock. This can be gauged from the fact that the company hit its highest ever price in yesterday’s trading touching an intraday high of $45.06. The new high was the stocks fourth peak in five trading days, continuing the momentum the stock is currently experiencing. The stock opened higher in today’s trading session and is currently trading at $45.39, a gain of 0.78% over yesterday’s close.

To see Facebook's latest stock price movement, click here (NASDAQ:FB)
See our detailed Facebook stock analysis.

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Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

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