Facebook, FTC discussing creation of 'independent' privacy committee - report

Facebook and the Federal Trade Commission (FTC) have discussed the creation of new privacy policies and roles together with an expected multibillion-dollar fine to settle the regulator's investigation into the social network’s privacy practices, according to an unnamed source cited by Politico. The deal would involve appointing a federally approved privacy official at Facebook and setting up an "independent" privacy oversight committee that may include Facebook board members, said the source.

The proposed settlement would also require Facebook to designate a key compliance officer (likely to be the company’s CEO and chairman Mark Zuckerberg) who would be responsible for carrying out privacy policies and would be personally accountable for Facebook's handling of the issue, added the source. The FTC would require the new privacy oversight committee to meet quarterly and issue periodic reports on the company's privacy practices and would "essentially" have veto power over the choice of the federally approved privacy executive.

The report adds that any settlement deal is subject to change until a majority of the FTC's five commissioners approve its content. Facebook last week reported revenues up 26 percent from the year before to USD 15.077 billion but its net profit was hit by a USD 3.0 billion provision for legal expenses, with the company estimating the cost to resolve the FTC's investigation at USD 3-5 billion.