Key Point: The FTC’s fine is the largest for any COPPA-related incident; however, two issues of first impression alleged in the Complaint could have a more significant impact over the long term.

Medicine doctor hand working with modern digital tablet

We previously reported that the Federal Trade Commission (“FTC”) entered into a settlement agreement with Facebook, Inc., which included a record-breaking $5 billion fine for repeat violations of consumers’ privacy rights. The FTC recently announced that it had entered into a settlement with Google, LLC (“Google”) and its subsidiary YouTube, LLC (“YouTube”), in which those entities will pay a $170 million fine for violating the Children’s Online Privacy Protection Act (“COPPA”) Rule. The $170 million fine is the largest the FTC has issued in a COPPA case since Congress enacted the law in 1998.

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iPhone close-up of appsIn 2010, Mark Zuckerberg famously stated that privacy was no longer a “social norm.”  Today, the Facebook founder is no doubt viewing social norms around privacy a bit differently, as are U.S. regulators and consumers.

On Wednesday, the Federal Trade Commission (FTC) confirmed that it agreed to a settlement with Facebook, Inc. stemming from Facebook’s alleged privacy violations in the Cambridge Analytica scandal.  In the settlement order (Order), Facebook agreed to pay a record-breaking $5 billion penalty to resolve the FTC’s claims that Facebook violated a prior FTC order by repeatedly using deceptive disclosures and settings to undermine users’ privacy preferences and allowing Facebook to share users’ personal information without prior consent with third party applications.

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