FTC, states increase pressure on Facebook on privacy

U.S. regulators and state attorneys general are increasing pressure on Facebook as they probe whether the company's data-collection practices have hurt the people who use its services.

Facebook's stock, which already took a big hit last week, tumbled another 6.5 percent Monday after the Federal Trade Commission confirmed news reports that it was investigating the company.  The shares finished  the day with a small gain as the broader market surged. 

Separately, the attorneys general for 37 U.S. states and territories sought details Monday on how Facebook monitored what app developers did with data collected on Facebook users and whether Facebook had safeguards to prevent misuse.

Facebook's privacy practices have come under fire after revelations that a Trump-affiliated consulting firm, Cambridge Analytica, got data on millions of Facebook users. That included information on friends of people who had downloaded a psychological quiz app, even though those friends hadn't given consent to sharing.

Facebook is also facing questions about reports that it collected years of contact names, telephone numbers, call lengths and information about text messages from Android users. Facebook says the data are used "to improve people's experience across Facebook" by helping to connect with others. But the company did not spell out exactly what it used the data for or why it needed it.

In addition, the state's attorney of Cook County in Illinois has sued Facebook and Cambridge Analytica for consumer fraud after revelations that the latter obtained data on millions of Facebook users. Facebook has not commented on the lawsuit.

Tom Pahl, acting director of the FTC's Bureau of Consumer Protection, said the U.S. probe would include whether the company engaged in "unfair acts" that cause "substantial injury" to consumers. Facebook reached a settlement with the FTC in 2011 offering privacy assurances.

Facebook said in a statement on Monday that the company remains "strongly committed" to protecting people's information and that it welcomes the opportunity to answer the FTC's questions.

Meanwhile, state attorneys general asked Facebook CEO Mark/ Zuckerberg for an update on how Facebook will allow users to control the privacy of their accounts more easily.

"Facebook has made promises about users' privacy in the past, and we need to know that users can trust Facebook," they wrote. "With the information we have now, our trust has been broken."

In a statement, Facebook's vice president for state and local public policy, Will Castleberry, said the attorneys general "have raised important questions and we appreciate their interest. Our internal review of the situation continues and we look forward to responding."