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Facebook Privacy: Your Life for Sale CASE STUDY F "acebook describes its corporate mission as giv- people on Facebook. The messages targeted users *ing people the power to build community and based on their personal information collected by bring the world closer together in 2017 and Facebook in the normal course of business, including 2018 these lofty objectives took a serious blow when religion, race, ethnicity, personal interests, and po it became known that Facebook had lost control of litical views. The ads targeted groups who had oppos the personal information users share on the site. ing political views with the intention of intensifying Facebook had allowed its platform to be exploited by social conflict among them Russian intelligence and political consultants with How could all this happen? As it turns out, it was the intention of intensifying existing political cleav- quite easy and inexpensive, given the design and ages, driving people away from community and from management of Facebook Once Facebook grants ac- one another during the U.S. presidential election of cess to advertisers app developers, or researchers, 2016, it has a very limited capability to control how that In January 2018, a founder and former employee information is used. Third-party agreements and of a political consulting and voter profiling company policies are rarely reviewed by Facebook to check called Cambridge Analytica revcated that his firm for compliance Facebook executives claimed they had harvested the personal information of as many were as shocked as others that 87 million Facebook as 87 million users of Facebook, and used this infor users had their personal information harvested by mation in an effort to influence the U.S. presidential Russian intelligence agencies and used by Cambridge election of 2016. Facebook does not sell the personal Analytica to target political ads information of its users, but it did allow third-party It gets worse: In early June 2018, several months apps to obtain the personal information of Facebook after Facebook was forced to explain its privacy users. In this case, a U.K. researcher was granted measures and pledge reforms in the wake of the access to 50,000 Facebook users for the purpose of Cambridge Analytica scandal, the New York Times research. He developed an app quiz that claimed to reported that Facebook had data-sharing partnerships measure tisers personality traits. Facebook's design with at least 60 device makers, as well as selected allowed this app to not only collect the personal in app developers. Facebook allowed Apple, Samsung, formation of people who agreed to take the survey. Amazon, and other companies that sell mobile but also the personal information of all the people in phones, tablets, TVs, and video game consoles to those users' Facebook social network. The researcher gain access not only to data about Facebook users sold the data to Cambridge Analytica, who in turn but also personal data about their friends-without used it to send targeted political ads in the presiden their explicit consent. All of these practices were tial election in violation of a 2012 privacy settlement with the In a Senate hearing in October 2017, Facebook FTC (Federal Trade Commission) in which Facebook testified that Russian operatives had exploited agreed to stop deceiving users about their ability to Facebook's social network in an effort to influence control their personal data, and to stop sharing data the 2016 presidential election. More than 130,000 with third parties without informing users fake messages and stories had been sent to Facebook Facebook did not in fact change its behavior and users in the United States using an army of auto- instead deceived its users by claiming it could con- mated software bots, built and operated by several trol their privacy. Senior managers at Facebook thousand Russian-based hackers working for a including founder and CEO Mark Zuckerberg, were Russian intelligence agency, the Internet Rescarch apparently aware of this deception according to Agency. (A bot is a software program that performs company emails. In 2019 Facebook's privacy issues an automated task, and is often on the Internet for finally resulted in a record-breaking $5 billion dollar malicious purposes-see Chapter 8.) Using 75,000 fine by the FTC for obviously and intentionally vio fake Facebook accounts and 230,000 bots, Russian lating the 2012 settlement. Facebook also agreed to hackers sent messages to an estimated 146 million new oversight by regulators in privacy matters, and Chapter 4 Ethical and Social issues in Information Systems 157 to develop new practices and policies for handling could be used against them in some way. That in- personal information. While $5 billion is a large sum dudes plans to travel on a particular day, which of money, for a company with $5 billion in annual burglars could use to time robberies or Liking a revenue, the fine may not be enough to change its page about a particular health condition or treat- actual behavior. The fine was in the words of crit ment, which might prompt insurers to deny cover Ics, barely a dent in Facebook's revenue. There are age. Credit card companies and similar organizations no specific restrictions on its mass surveillance of have begun naging in weblining taken from the users, and the new privacy policies will be created by term red by altering their treatment of you Facebook not the FTC, The settlement also provided based on the actions of other people with profiles Immunity to Facebook executives and directors from similar to yours Employers can assess your person any personal liability for the past violations of the ality and behavior by using your Facebook Likes 2012 settlement, and of users' privacy, and shielded Millions of book users have never adjusted the company from any claims of past violations. In Facebook's privacy controls, which allow friends other words, the past was wiped clean using Facebook applications to transfer your data un Facebook has a diverse array of compelling and wittingly to a thind party without your knowledge useful features. It has helped families find lost pets Why, then do so many people share sensitive and allow active duty soldiers to stay in touch details of their life on Facebook? Oken, it's because with their families and it gives smaller companies users do not realise that their data are being col. a chance to further cher e-commerce efforts and lected and transmitted in this way. A Facebook larger companies a chance to solidify their brands ce's friends are not notified information about Perhaps most obviously, Facebook makes it easier them is collected by that's applications. Many for you to keep in touch with your friends, relatives of Facebook features and services are enabled by local restaurants, and, in short, just about all the default when they are launched without notify things you are interested in. These are the reasons so ing users and a study by Siegel Gale found that many people use Facebook --It provides real value to Facebook's privacy policy is more difficult to compre users. But at a cost. The cost of participating in the hend than government notices or typical bank credi Facebook platform is that your personal information card agrooments, which are notoriously donse. Did las shared with advertisers and with others you may you know that whenever you log into a website using not know Facebook Facebook share some personal informa Facebook's checkered past of privacy violations tion with the site and can track your movements on and missteps rases doubts about whether it should that site? Next time you visit Facebook, click Privacy be trusted with the personal data of billions of Settings and see whether you can understand your people. Unlike European stations there are no laws options in the United States that give consumers the right However, there are some signs that Facebook to know what data companies like Facebook have might become more responsible with its data col compited. You can challenge information in credit lection proces, whether by its own volition or reports because of the fair Credit Reporting Act because it is forced to do so. As a pablicly traded but until recently, you could not obtain what data company, Facebook now invites more scrutiny from Facebook has gathered about you investors and regulation in 2013. in response to Think you own your face? Not on Facebook macistrom of criticism in the United States and thanks to the firm's facial recognition software for Europe's new General Data Protection Regulation photo tagging of users. This was suggestions feature (GDPR), Facebook clunged its privacy policy to is automatically on when you sign up and there is make it easier for users to select their privacy pre no usercontent. A federal court in 2016 allowed a erences to know exactly what they are consenting lawatilt to go forward contesting Facebook's right to to download users personal archives and the in photo tag without user consent. This feature is in formation that Facebook collects and shares, includ. violation of several state laws that seek to secure the ing facial images to restrict dick bait and spam in privacy of biometric data, newsfeeds to more closely monitor app developers A Consumer Rapports study found that among 150 use of personal information and to increase efforts million Americans on Facebook every day, at least eliminate millions of fake accounts Facebook 4.8 million were willingly sharing information that hired 10,000 new cmployees and several hundred 158 Part One Organizations, Management, and the Networked Enterprise fact-checking firms to identify and eliminate fake what its users do on other websites and then targets news. For the first time in its history, Facebook is ads to those users on those websites being forced to apply editorial controls to the content Critics have asked Facebook why it doesn't offer posted by users and, in that sense, become more an ad-free service-like music streaming sites for like a traditional publisher and news outlet that a monthly fee. Others want to know why Facebook takes responsibility for its content. Unfortunately, as does not allow users just to opt out of tracking. But researchers have long known, and Facebook execu- these kinds of changes would be very difficult for tives understand, very few users-estimated to be Facebook because its business model depends en less than 12 percent-take the time to understand tirely on the largely unfettered use of its users' per- and adjust their privacy preferences. In reality, usersonal private information, just as it declares in its choice is not a powerful check on Facebook's use of data use policy. That policy states very openly that personal information if you use Facebook you agree to its terms of service, Although U.S. Facebook users have little recourse which enable it to share your information with third to access data that Facebook has collected on them. parties of its choosing. As Apple CEO Tim Cook users from other countries have done better. In noted, at Facebook, the product they sell is you. Europe, over 100,000 Facebook users have already Source: Mark Zuckerberg. Starting the New Decade by Gring requested their data, and European law requires You More Control You're Your Privacy." abat fb.com January 28 Facebook to respond to these requests within 40 2020, Geoffrey A. Fowler, Facebook will Now Show You Tactly days. Government privacy regulators from France, How It Stalks You-Even When You're Not Using Facebook, Washington Post, January 24 2020, Mike Isaac and Natasha Singer Spain, Italy, Germany, Belgium, and the Netherlands On Wednesday, the Federal Trade Commission Placed New have been actively investigating Facebook's privacy Conditions on Facebook for Privacy Violations in Muk Times controls as the European Union pursues more strin July 24, 2019, A S5 Balion Fine for Facebook Won't Fox Privacy Neuer Mark Tames July 25, 2019, Devin Coldwey and Natasha gent privacy protection legislation. Lomas, "Facebook Settles with FICSS Billion and New Privacy CEO Mark Zuckerberg stated in January 2020 that Guarantees, Technunch, July 24, 2019.John D. McKinnon, one of Facebook's main goals for the next decade is Emily Gia Deepa Seetharaman, and Jeff Horwitz, "Facebook to build much stronger privacy protections for ev. Wueries Emails Could Show Zackerberg Knew of Questionable Privacy Practices. Soko June 12, 2019, Federal Trade eryone on Facebook. For example, Facebook made Commission. In the Master of Facebook a Corporation, FTC, an Off-Facebook Activity" tool available to all of its July 24, 2019: Deepa Seetharaman and Kirsten Grind, "Tacebook members. This tool allows people to see and control Gave Some Companies Access to Additional Data About Us the data that other apps and websites share with Friends Wall Street Journal June 11, 2016. Cecilia Kang and Sheera Frenkel "Facebook Says Cambridge Analytica Harveseed Date of Facebook. Nevertheless, although Facebook has shut Up to 87 Million Users, New York Times, April 24, 2018, Eduardo down several of its more egregious privacy-invading Porter, "The Facebook Fallace Privacy Is Up to You." York features and enhanced its consent process, the com- Times, April 24, 2018 and David Mayer, Facebook Is Giving You pany's data use policies make it very clear that, as a New Privacy Options, But its clear What It Wants You to choose, Norte, March 19, 2018 condition of using the service, users grant the com- pany wide latitude in using their personal informa- CASE STUDY QUESTIONS tion in advertising. The default option for users is 4-13 l'erform an ethical analysis of Facebook. What "opt-in"; most users do not know how to control use is the ethical dilemma presented by this case? of their information; and they cannot opt out of all 4-14 What is the relationship of privacy to sharing if they want to use Facebook. This is called Facebook's business model? the control paradox" by researchers: even when 4-15 Describe the weaknesses of Facebook's privacy users are given controls over the use of their per- policies and features. What management, orga- sonal information, they typically choose not to use nization, and technology factors have contrib those controls. Although users can limit some uses of uted to those weaknesses? their information, extensive knowledge of Facebook 4-16 Will Facebook be able to have a successful busi- data features is required. Facebook shows you ads ness model without invading privacy? Explain not only on Facebook but across the web through its your answer. Could Facebook take any mea. Facebook Audience Network, which keeps track of sures to make this possible