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Facebook to pay $725 million to settle Cambridge Analytica scandal case

Dec 24, 2022, 5:34 PM UTC
2 mins read
Facebook to pay $725 million to settle Cambridge Analytica scandal case
The logo of Meta Platforms' business group is seen in Brussels, Belgium December 6, 2022. (Credit: REUTERS/Yves Herman)

In March 2018, Facebook faced a major scandal when it was revealed that political consulting firm Cambridge Analytica had improperly obtained the personal data of millions of Facebook users. The data was allegedly used to influence voter opinion and behavior during the 2016 U.S. presidential election.

As a result of the scandal, Facebook faced numerous investigations and lawsuits, including a class action lawsuit brought by a group of Facebook users in the United States. Facebook announced that it had reached a settlement in the case, agreeing to pay $725 million to the plaintiffs.

The settlement, which still requires court approval, would resolve all claims related to the Cambridge Analytica scandal and bring an end to a years-long legal battle. If approved, the settlement would provide compensation to the affected Facebook users, as well as fund initiatives aimed at protecting user privacy on the platform.

The Cambridge Analytica scandal was a major blow to Facebook’s reputation, as it raised concerns about the company’s ability to protect user data and the potential for abuse of that data. In the wake of the scandal, Facebook implemented a number of changes to its privacy policies and practices, including introducing more stringent controls on the data that third-party apps can access and increasing transparency around political advertising.

Despite these efforts, Facebook has continued to face criticism and scrutiny over its handling of user data. In December 2019, the company agreed to pay a record-breaking $5 billion fine to the Federal Trade Commission (FTC) to settle charges that it had violated a previous settlement with the agency over its handling of user data.

As Facebook moves to put the Cambridge Analytica scandal behind it, the $725 million settlement is a reminder of the high cost of data breaches and the importance of protecting user privacy. It remains to be seen whether the settlement will be enough to fully restore trust in the company and prevent similar scandals from occurring in the future.


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