Facebook donates $10 million as part of privacy class-action settlement


June 19, 2012

Facebook has become the latest company to pay the price for not properly considering the privacy of users.

The social media giant has agreed to donate US$10 million to charity as part of a legal settlement reached in May.

The proposed class-action lawsuit was brought on by five users, who argued that Facebook had violated their right to privacy by publicising their ‘Likes’ on paid advertisements without permission.

However, Facebook may have got off lightly. A study conducted in January 2011 by Edison Research found that 51 per cent of Americans aged 12 and over – or around 160 million people – were now using Facebook.

Had the lawsuit included every one of those users, Mark Zuckerberg’s empire may have been facing billions of dollars in payments.

Companies who operate in the online environment have a responsibility to protect the privacy and secure information of clients.

But as new technology emerges and businesses find new ways to interact with customers, companies may find themselves left with unexpected vulnerabilities.

If you’re concerned about the privacy of your client information, then a due diligence assessment is an excellent way to review the security protocols of your business.

A security due diligence assessment is a third party evaluation of the threats and compliance gaps in your system, and provides you with a thorough list of recommendations aimed at ensuring complete user privacy.

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