The Federal Trade Commission is set to announce the terms of its settlement with Facebook amid allegations that the social media giant mishandled its users’ private information.
According to two people briefed on the matter, Facebook has agreed to pay $5 billion and create a board committee on privacy.
As part of the settlement, Facebook will also agree to new executive certifications that users’ privacy is being properly protected, the sources said.
The Washington Post reported on Tuesday that the FTC will allege Facebook misled users about its handling of their phone numbers and its use of two-factor authentication, citing two people familiar with the matter.
The Post also reported the FTC also plans to allege Facebook provided insufficient information to about 30 million users about a facial recognition tool, an issue identified earlier by Consumer Reports.
Two people briefed on the matter confirmed the Post report the FTC will not require Facebook to admit guilt as part of the settlement.
The settlement will need to be approved by a federal judge and will contain other significant allegations of privacy lapses, the people said.
The fine will mark the largest civil penalty ever paid to the FTC.
The FTC and Facebook declined to comment.
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