thibaud spiny: FTC considering new settlement process so companies can't deny wrongdoing

Tuesday, August 14, 2012

FTC considering new settlement process so companies can't deny wrongdoing

Google recently paid the FTC $22.5 million and Facebook was ordered by the commission to change the way it handles data, but you might be surprised to hear that both companies did nothing wrong. Well, not exactly, but by settling their privacy violation cases, the internet giants are entitled to deny any misconduct. The New York Times reports that J. Thomas Rosch, a commissioner who voted against both settlements, feels that current rules will invite "denials of liability in every case in the future." Rosch wants the policy changed so companies can't deny responsibility when settling, much like the way the SEC handles similar indiscretions. Most of his colleagues weren't in a hurry to back his opinions, but three did say that refining the process could "avoid any possible public misimpression" of how the FTC strikes such deals. The commission is expected to look at the issue in the near future, but until then, we're sure you're more than able to separate the reality from the legalese.