London Daily

Focus on the big picture.
Saturday, Aug 22, 2026

Facebook’s Privacy Settlement Argued Consumers Were Never Harmed. Experts Disagree

Facebook’s Privacy Settlement Argued Consumers Were Never Harmed. Experts Disagree

Facebook’s $5 Billion Privacy Settlement Argued Consumers Weren’t Harmed. Experts Think the Damage Was Incalculable

New documents reveal that Facebook didn’t think it harmed consumers when it allowed data from up to to 85 million accounts to be harvested by data analytics firm Cambridge Analytica in 2016.

The argument, which was documented in a February 2019 white paper obtained by The Washington Post, was part of the Federal Trade Commission’s probe into Facebook’s privacy practices that ended with a record fine of $5 billion.

At the time of the white paper, the FTC reportedly was considering hitting Facebook with a fine of tens billions of dollars—a punishment Facebook's lawyers deemed as "unconstitutional" and "unlawful." Vying leniency, Facebook’s lawyers argued that the company didn’t profit from the alleged violations of user privacy, and that consumers didn’t suffer personal injury, according to the Post.


But some privacy experts vehemently disagree.

“Personal information about political affiliation was used to micro-target people, based on the preferences and knowledge that Cambridge acquired illegally,” said David Vladeck, a Georgetown Law professor who served as the director of the FTC’s Bureau of Consumer Protection from 20019 to 2012, “The idea that that has no value… is simply ridiculous.”

Vladeck said that the damage associated with lost data often times is impossible to fix, and therefore equally impossible to quantify in dollars. But that doesn’t mean there's been no harm, he said.

As an example, he referred to Ashley Madison, the website that facilitated affairs for married people. In 2015, hackers leaked personal information, including full names and email addresses, of 36 million people using the service. The result was irreparable harm that included destroyed marriages and even suicides, Vladeck said.

“How do you monetize losing a loved one?” he said.

In Facebook’s case, personal data was used to influence people’s votes in the 2016 presidential election: “Who knows what they would’ve done if they hadn’t seen the ads,” Vladeck said.

Jim Steyer, CEO of Common Sense Media, said Facebook’s attempted defense is a clear sign that even stricter regulations should be imposed on the company.

“What Facebook's very own words show is exactly what we've been saying for years, which is that this company does not believe violating the privacy of consumers is harmful,” he said. “Their business model is based on the data of its users and they are going to continue to do everything they can to profit off of the information they collect."

And Facebook users are still claiming harms by Facebook, according to The Electronic Privacy Information Center.

The organization said it has uncovered more than 32,000 complaints against Facebook, many of which are related to privacy. Since the FTC settled with the company, EPIC has urged the House Appropriations Committee to further investigate the complaints.

But Chris Hoofnagle, faculty director of the Berkeley Center for Law & Technology, said Facebook’s defense is a “perfectly fine legal argument.” That’s because it attempts to address two of the FTC’s factors in determining a civil penalty: whether there was injury to the public and whether there was a desire to eliminate the benefits derived by the violation.

Jane Bambauer, director of the Program on Economics & Privacy at George Mason University Law School, said that in cases like Facebook’s, defining “harm” is becoming increasingly difficult and complex.

Either way, the fact that Facebook used the argument in an attempt to lower a potential fine was pointless, said Georgetown’s Vladeck. The Cambridge Analytica incident proved that Facebook had broken an earlier agreement it made with the FTC about how it would manage users’ data, thus the fine, he said.

“It’s not intended to compensate consumers,” Vladeck said. It’s “to punish Facebook for violating its consent decree… and to send signals to other actors in marketplace, which is, ‘Don’t be Facebook.’”

Newsletter

Related Articles

0:00
0:00
Close
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
UK Government Holds First National Day for Victims and Survivors of Terrorism
UK Met Office Warns of Severe Autumn Storms as Strong El Niño Follows Historic Drought
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
×