Facebook facing £500,000 fine in privacy scandal

After the British Information Commissioner's Office (ICO) found that Facebook Inc. had “security issues” and a “lack of transparency” related to political data harvesting in its interaction with SCL Group Ltd., the regulator issued a notice of intent to fine the social media company £500,000 (C$870,000). These findings are part of an interim report on the use of data analytics in political campaigns, published by the ICO on Tuesday. Also included is the investigation into criminal charges for SCL and a notice of enforcement, which bans Victoria-based AggregateIQ Data Services Ltd. from processing the data of British citizens. Led by the U.K. information commissioner and former B.C. privacy commissioner Elizabeth Denham, the ICO cited weaknesses in Facebook’s upholding of its terms and services after it had discovered misuse of data, and bad communication with its users about the potential exploitation of their data. The privacy regulator is also looking into whether SCL “knowingly or recklessly” procured personal data without consent, as well as if it subsequently sold that data. Both are considered criminal offenses under U.K. law, according to the report. The actions, including the largest possible fine under previous U.K. privacy law, are some of the first set of consequences levied on the players involved in the scandals. The regulations under which Facebook would be fined, as the investigation began when they were in force, were replaced by the European Union’s General Data Protection Regulation in May. Instead of the £500,000 limit, penalties from future investigations could be as much as four per cent of global revenues. During Canadian investigations, witnesses involved in the scandals have testified to the Parliamentary ethics committee. So far, the committee heard that involved companies have allegedly attempted to influence international elections using stolen personal information and co-ordinated Brexit campaigns (in violation of U.K. election law), but also denials of any wrongdoing. Vis-a-vis AggregateIQ, the ICO listed financial transactions and shared contact links that the regulator said provided evidence of a “close working relationship” between it and SCL. In front of U.K. and Canadian investigators, representatives from AggregateIQ have characterized that relationship as merely between software developer and client. Private companies weren’t the only ones in the ICO’s crosshairs. Political organizations advocating for both sides of the Brexit referendum have been included as potentially misusing data, and 11 British political parties have received letters indicating their data practises will be audited later this year. The ICO will allow Facebook to respond to these allegations by the end of the month, according to the interim report, before the fine is imposed. The ICO expects the current phase of its investigation to conclude in October.

Facebook facing £500,000 fine in privacy scandal

Brief | July 11, 2018

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Facebook facing £500,000 fine in privacy scandal

Brief | July 11, 2018

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