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Facebook’s New User Privacy Regime Likened to Financial Controls (1)

July 24, 2019, 6:31 PMUpdated: July 24, 2019, 9:41 PM

Facebook Inc.'s settlement with the FTC will require the company to adopt the kind of high level privacy oversight more akin to financial controls.

The Federal Trade Commission is requiring the social media giant’s CEO Mark Zuckerberg and other executives to regularly sign off on compliance with its July 24 settlement over failing to protect user privacy. Facebook must also form a first-of-its-kind board committee dedicated to overseeing privacy protections, much like its audit committee’s oversight of financial statements.

Facebook’s privacy committee must be made up of independent directors with experience in corporate compliance as well as data protection and ...