CHANCE
CHANCE TO
CHANCE TO QUESTION BOB MUELLER.
CHANCE TO QUESTION BOB MUELLER.@ >>> FIRST SOME KIND OF NEWS
THAT GOT OVERSHADOWED.
THE GOVERNMENT IS FINING
FACEBOOK FOR PRIVACY VIOLATIONS
THE GOVERNMENT IS FINING FACEBOOK FOR PRIVACY VIOLATIONS@
$5 BILLION.
$5 BILLION. IN A SEPARATE CASE THE FEDS ARE
TACKING ON ANOTHER $100 MILLION
PENALTY FOR 4@MISUSING PERSONAL
DATA.
DATA.
DATA. JOINING ME TONIGHT, FEDERAL 4@
TRADE COMMISSION COMMISSIONER
NOAH PHILLIPS.
NOAH PHILLIPS. THANK YOU FOR TAKING THE TIME.
I NEED TO POINT OUT THE
CURIOSITY OF THE TIMING OF THIS
COMING OUT TODAY WITH THE
MUELLER HEARINGS.
MUELLER HEARINGS. I KNOW YOU WEREN'T IN CHARGE OF
THAT.
THAT.
THAT. THE
THAT. THE DEPARTMENT OF JUSTICE PUT
OUT THIS RELEASE THIS MORNING
SO I WANTED TO PINT OUT, HEY,
MAYBE NOT A COINCIDENCE.
TALK TO ME ABOUT THIS FINE AND
GOING AFTER A FACEBOOK.
THIS HAS BEEN A LONG TIME
MAKING.
MAKING.
MAKING. CAN YOU PUT IT SUCCINCTLY FOR
US?
US?
US? WHAT
US? WHAT DID FACEBOOK DO WRONG, AND
WHY ARE THEY BEING PUNISHED?
>> ABSOLUTELY.
>> ABSOLUTELY. AND A THANKS 4@FOR HAVING ME,
ADAM.
ADAM.
ADAM. IN
ADAM. IN 2012 FACEBOOK MADE
COMMITMENTS WITH USERS AND TO
THE FEDERAL GOVERNMENT THAT IT
WASN'T GOING TO MAKE
MISREPRESENTATION HAVING TO DO
WITH HOW THEY WERE 4@SHARING DA
AND THE CONTROL THAT CONSUMERS
HAD OVER THAT DATA, AND THEY
PROMISED TO HAVE A REASONABLE
PRIVACY PRACTICE.
PRIVACY PRACTICE. TODAY THE COMPLAINT ALLEGES
THAT THEY BROKE THOSE PROMISES.
THAT'S WHY WE'RE HERE TODAY.
>> $5 B. THAT'S THE LARGEST
CIVIL PENALTY LEVIED ON ANY
SORT OF AMERICAN BUSINESS
ENTITY, IS THAT CORRECT?
>> THERE ARE HIGHER ONES, BUT
THEY ARE VERY, VERY FEW IN
NUMBER.
NUMBER.
NUMBER. THIS STANDS RUFFLE ON PAR WITH
WHAT I BELIEVE IS THE LARGEST
CIVIL PENALTY EVER 4@ASSESSED B
THE U.S. GOVERNMENT, $5.5
BILLION, AGAINST BP FOR THE 4@
DEEP WATER HORIZON
ENVIRONMENTAL DISASTER.
ENVIRONMENTAL DISASTER. >> I'M 4@MORE BUILD CURIOUS WHO
GETS THE MONEY?
WHAT DOES IT GO TOWARD?
WE COULD MAKE A HECK OF A DOWN
PAYMENT A PAYING OFF THE
NATIONAL DEBT.
NATIONAL DEBT. >> ACTUALLY THAT'S WHERE IT
GOES.
GOES.
GOES. IT
GOES. IT GOES 4@TO4@ THE AMERICAN
TAXPAYERS.
TAXPAYERS. BUT I WANT TO STRESS SOMETHING.
WHAT WE'VE ACHIEVED ISN'T JUST
THE 5 BILLION PENALTY WHICH IS
HISTORIC.
HISTORIC.
HISTORIC. WE'VE ALSO ACHIEVED REALLY
IMPORTANT CHANGES TO HOW
PRIVACY IS TREATED AT FACEBOOK.
>> CAIN NAIL YOU DOWN ON THAT
POINT IN THE GOES TO THE
AMERICAN TAXPAYER.
AMERICAN TAXPAYER. OBVIOUSLY THE AMERICAN TAXPAYER
IS WITHIN THE PURVIEW OF ANY
MONEY SPENT BY THE U.S.
GOVERNMENT.
GOVERNMENT. DOES THAT A MONEY GET EARMARKED
FOR SOMETHING?
FOR SOMETHING? DOES IT GO IN THE GENERAL FUND?
>> IT GOES RIGHT TO THE FED,
RIGHT TO 4@THE TREASURY.
>> THEN THEY GET TO DICTATE
WHAT HAPPENS 4@IN THE NEXT BUDG
SICKLE.
SICKLE.
SICKLE. >> THERE ARE TWO REALLY
IMPORTANT PRESS DEPARTMENTS.
THE FIRST IS THAT THE COST OF
PRIVACY VIOLATIONS IN THE
UNITED STATES JUST WENT UP.
THE SECOND PRECEDENT THAT WE'RE
SETTING, AND THIS HAS 4@TO DO
WITH THE RELEASE, CHANGING THE
WAY THAT FACEBOOK APPROACHES
PRIVACY, 4@THAT FACEBOOK HAS TO
PAY A LOT MORE ATTENTION TO
PRIVACY THAN IT DID YESTERDAY.
>> THERE WERE SOME DISSENT BY
OTHER MEMBERS OF THE FTC
COMMISSION THINKING THAT
PERHAPS MARK ZUCKERBERG
INDIVIDUALLY SHOULD HAVE 4@BEEN
CRIMINALLY CHARGED AS HIMSELF.
IS THAT RIGHT?
WHY DID YOU NOT FEEL IT 4@SHOUL
HAVE GONE THAT WAY?
>> WE'RE A CIVIL ENFORCEMENT
AGENCY SO IT'S NOT WITHIN OUR
POWER 4@TO BRING CRIMINAL
CHARGES.
CHARGES.
CHARGES. THAT'S THE DEPARTMENT OF
JUSTICE.
JUSTICE.
JUSTICE. >> ONE LAST THING.
YOU WROTE 4@A STATEMENT IN
SUPPORT, IN DEFENSE OF YOUR
DECISION HERE, WHERE FACEBOOK
HAS TO ESTABLISH A NEW BOARD OF
DIRECTORS THAT 4@IS FOCUSED SOL
ON PRIVACY-RELATED RISKS.
AND THIS BOARD OF DIRECTORS 4@I
NOT IN ANY WAY TIED TO
FACEBOOK, CORRECT?
FACEBOOK, CORRECT? SO WHAT WILL THIS NEW BOARD DO,
AND HOW DOES IT BENEFIT ALL OF
US WHO USE FACEBOOK?
>> ACTUALLY IT'S BETTER THAN
THAT.
THAT.
THAT. THEY HAVE A NUMBER OF
OBLIGATIONS UNDER THE ORDER
THAT CAME OUT TODAY.
BUT THE CRITICAL THING THAT YOU
ARE TALKING ABOUT IS THAT A
FACEBOOK HAS TO ESTABLISH
WITHIN ITS BOARD OF DIRECTORS,
THE PEOPLE4@ WHO RUN THE COMPAN
18 DEPENDENT COMMITTEE OF
DIRECTORS FOCUSED EXCLUSIVELY
ON PRIVACY.
ON PRIVACY. THAT COMMITTEE WILL MEET
REGULARLY.
REGULARLY. THEY WILL SCWOAFER SEE WHAT'S
GOING ON AT PRIEF ZION
FACEBOOK.
FACEBOOK.
FACEBOOK. THEY WILL HEAR BOTH FROM
MANAGEMENT AND ALSO FROM AN
OUTSIDE ASSESSOR WHICH IS
TOTALLY INDEPENDENT WHICH WILL @
REPORT TO THEM AND ALSO TO US.
BUT IT'S ALSO IMPORTANT 4@TO NO
THAT THE RELIEF WE'VE SECURED
TODAY GOES EVEN FURTHE4@R THAN.
THAT MARK ZUCKERBERG PERSONALLY
ALONG WITH OTHERS AT THE
COMPANY HAVE TO CERTIFY, ON
PAYING OF CIVIL AND CRIMINAL
PENALTIES, THAT THE COMPANY IS
COMPLYING.
COMPLYING. >> IF HE DOESN'T DO IT RIGHT
THE GOVERNMENT IS COMING BACK
FOR MORE.