FRANCE WITH THE PERSON HOLDING
THE HOSTAGES SAYING HE IS
WORKING FOR ISIS.
INVESTORS MEANWHILE, LAWMAKERS
BACK IN THE UNITED STATES ARE
EYEING FACEBOOK.
THE STOCK HAD A TOUGH WEEK.
IT IS EXTENDING THE LOSSES THIS
MORNING AFTER FACEBOOK OFFICIALS
WERE GRILLED ON CAPITOL HILL
OVER THE COMPANY'S DATA MINING
CONTROVERSY.
NOW LAWMAKERS ARE CALLING FOR
CEO MARK ZUCKERBERG TO TESTIFY
BEFORE CONGRESS.
THE HOUSE ENERGY AND COMMERCE
COMMITTEE RELEASED A STATEMENT
YESTERDAY, READING IN PART WE
FELT THAT MANY QUESTIONS WERE
LEFT UNANSWERED.
WE BELIEVE AS CEOS OF FACEBOOK
HE IS THE RIGHT WITNESS TO
PROVIDE ANSWERS TO THE AMERICAN
PEOPLE.
JOINING US NOW IS THE MANAGING
DIRECTOR, ROGER McNAMEE.
YOU HAVE BEEN A MAJOR SUPPORTER
OF FACEBOOK OVER THE YEARS.
FIRST, LET'S PUT THIS IN
CONTEXT.
WHERE DO YOU STAND ON THIS PAST
WEEK?
>> I JUST THINK THIS IS A TRAGIC
SITUATION.
FACEBOOK OPERATED THE COMPANY AS
THOUGH IT WAS NEVER GOING TO
HAVE -- TAKE ANY INTERFERENCE
WITH ANYBODY.
IST WAS GOING TO GROW AS RAPIDLY
AS IT COULD.
IN THE PROCESS, IT HAS MADE
MISTAKES.
THERE HAS BEEN LOSS OF THE USER
PRO HE
PROFHE
PROFILES, A 50 MILLION OF THEM
TO CAMBRIDGE ANALYTICA, AN
UNTOLD NUMBER TO OTHER SOFTWARE
VENDORS.
THAT I'M VACATION OF PRIVACY IS
SOMETHING -- INVASION OF PRIVACY
IS SOMETHING PEOPLE CAN'T GET
BACK.
FACEBOOK HAS TO COME FORWARD AND
ACCEPT RESPONSIBILITY FOR THAT
AND SOME OTHER THINGS HAVE GONE
ON RELATIVE TO THE ELECTIONS.
IN MY MIND FOR MARK ZUCKERBERG
AND CHERYL SANDBERG, THIS IS A
MOMENT OF TRUTH WHERE THEIR
CHARACTER IS BEING TESTED AND SO
FAR IT'S NOT GOING WELL.
THIS HAS BEEN A DISASTROUS WEEK
FOR THEM.
>> MARIA: YOU DON'T LIKE THE WAY
TEAR RESPONDING TO THIS?
>> NO.
I THINK THEY HAVE A HORRIBLE
SITUATION.
THE RIGHT ANSWER IS YOU RACH
THE RIGHT ANSWER IS YOU REAH
THE RIGHT ANSWER IS YOU REACH
OUT TO THE CRITICS, FIND OUT
WHAT THE PROBLEM IS AND MAKE AN
EFFORT TO ADDRESS IT.
WHAT'S GOING ON INSTEAD IS
THEY'RE PRETENDING AS THOUGH
THERE'S NO BIG DEAL GOING ON,
THEY'RE SAYING NOTHING TO SEE
AND THEY'RE TAKING THE NOTION
THAT NO ONE HAS A RIGHT TO
CRITICIZE THEM.
>> MARIA: IT'S INTERESTING
BECAUSE THIS IS NOT NEW, RIGHT?
I MEAN, PLENTY OF OUTSIDE
VENDORS HAVE USED THE
OPPORTUNITY TO GET AND IN A
SENSE INFILTRATE INTO FACEBOOK'S
NETWORK OF USERS.
HOW COME WE'RE JUST LEARNING
ABOUT THIS NOW AND REACTING NOW?
I MEAN, YOU GO BACK TO THE
ELECTION OF BARACK OBAMA, AND
HOW PEOPLE USED -- POLITICOS
USED MINING OF ALL THIS DATA AND
PEOPLE'S DATA TO FIGURE OUT HOW
TO GET THOSE VOTERS.
>> YOU'RE ABSOLUTELY CORRECT IN
THAT THIS IDEA OF DATA MINING
HAS BEEN AROUND FOR A VERY LONG
TIME.
THERE ARE A COUPLE THINGS ABOUT
THIS ONE THAT ARE REALLY
DIFFERENT.
WHEN OBAMA DID IT THERE WAS FULL
DISCLOSURE, PEOPLE UNDERSTOOD
WHAT WAS GOING ON.
THAT WAS THE CORRECT WAY TO DO
IT.
THAT'S BEEN THE TRADITION FOR
MARKETERS.
YOU PROVIDE COMPLETE DISCLOSURE.
PEOPLE HAVE TO GIVE INFORMED
CONSENT.
WHAT'S GONE ON WITH FACEBOOK IS
THEY CONSCIOUSLY DECEIVED
PEOPLE.
THEY HAD AN OPPORTUNITY -- WELL,
THEY SIGNED A CONSENT DECREE
WITH THE FEDERAL TRADE
COMMISSION IN 2011 THAT
BASICALLY SAID THEY WOULD
REQUIRE INFORMED CONSENT BEFORE
THEY SHARED PEOPLE'S DATA.
WHAT HAPPENED WITH CAMBRIDGE
ANALYTICA IS CAMBRIDGE ANALYTICA
APPARENTLY SENT A RESEARCHER IN
TO PRETEND HE WAS GOING TO DO
ACADEMIC RESEARCH WHEN HE WAS
REALLY GOING TO GATHER DATA FOR
POLITICAL USE.
THEY DIDN'T JUST TAKE IT FROM
THE 270,000 PEOPLE WHO TOOK THE
SURVEY.
THEY TOOK ALL THEIR FRIENDS.
SO 50 MILLION PEOPLE.
>> MARIA: THAT'S INCREDIBLE.
>> THAT'S WHY PEOPLE ARE AFRAID.
THE PROBLEM IS NOW WE UNDERSTAND
THAT WAIT A MINUTE, THERE WERE
LITERALLY TENS OF THOUSANDS OF
OTHER VENDORS DOING EXACTLY THE
SAME THING WHILE THE CONSENT
DECREE WAS GOING ON.
IT'S ALLEGED THAT FACEBOOK HAD
NO COMPLIANCE STAFF TO ENFORCE
THE CONSENT DECREE.
THAT IS JUST IRRESPONSIBLE.
THAT'S WHY PEOPLE ARE SO ANGRY.
IT'S LIKE THE DATA'S OUT THERE
AND THERE'S NO WAY TO GET IT
BACK.
SO THAT'S WHY PEOPLE FEEL SO BAD
ABOUT THE COMMUNICATIONS THIS
WEEK.
THIS IS A SITUATION WHERE YOU'RE
SUPPOSED TO GO OH, MY GOD, WE'VE
DONE SOME SOMETHING REALLY
HORRIBLE, HOW CAN WE MAKE IT UP
TO YOU.
IT'S NOT LIKE WE CAN GET THE
DATA BACK BUT THERE'S A LOT OF
THINGS FACEBOOK CAN DO TO SHOW
THEY'RE GOING TO EARN THEIR
TRUST BACK.
THAT'S WHAT THEY FAILED TO DO.
>> MARIA: MARK ZUCKERBERG DID
ONE INTERVIEW, ANDERSON COOPER
ON CNN.
>> THE PROBLEM WAS THAT MARK DID
SEVERAL NEWSPAPER INTERVIEWS AND
ONE TV INTERVIEW ON CNN.
THE PROBLEM WAS HE MEMORIZED THE
SERIES OF ANSWERS AND GAVE THE
SAME ANSWERS TO EVERYBODY.
>> MARIA: IT DIDN'T SEEM
SINCERE.
>> THE PEOPLE WHO DID THE
INTERVIEWS WERE NOT MAIN LINE
REPORTERS.
THEY WERE ENTERTAINMENT PEOPLE.
WHEN CHERYL SANDBERG WENT ON
CNBC, IT WAS LIKE WHY DIDN'T SHE
COME ON THIS SHOW?
OBVIOUSLY SHE WAS TALKING TO
SOMEBODY WHO WAS AS WELL STUDIED
AND AND WELL STUDIED IN
TECHNOLOGY AS SHE.
THE PERSON SHE INTERVIEWED WITH
ON CNBC WAS A FINE REPORTER BUT
THIS IS NOT HER FIELD.
THIS IS NOT WHAT SHE DOES EVERY
DAY.
I LOOK AT THIS AS FROM CHERYL'S
POINT OF VIEW, SHE WANTS TO GET
OUT THERE AND HAVE PEOPLE
UNDERSTAND THAT SHE SINCERELY
WANTS TO SOLVE THE PROBLEM AND
THOSE NOT WHAT SHE'S DOING.
>> MARIA: WE DID REACH OUT TO
FACEBOOK AND I SENT AN E-MAIL
AND THEY DIDN'T GET BACK TO US.