Facebook's Stock Price Fell Immediately After the FTC's Latest Announcement

The FTC is going after Meta once again on privacy issues.

The US Federal Trade Commission alleged Wednesday that Facebook  (META) - Get Free Report, in addition to not complying with its 2020 privacy order, misled parents about the scope of protections the platform has in place for children.

In light of these alleged violations, the SEC is proposing a number of significant additions to its privacy order with Meta, according to a press release. One of the changes seeks to prohibit Meta from profiting off of data collected from users who are under 18. This ban would impact Meta’s virtual reality products as well as other platforms, including Instagram.

“Facebook has repeatedly violated its privacy promises,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection said in a statement. “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”

DON’T MISS: Mark Zuckerberg Reveals a Troubling Change to How Facebook, Instagram Feeds Work

This is not the first time the FTC has filed orders against Facebook for privacy violations. The first order was secured in 2012; Facebook’s violation of that order led to the infamous Cambridge Analytica scandal, which led to a $5 billion civil penalty and a second order which took effect in 2020.

This action against Meta accuses the social media firm of violating the Children’s Online Privacy Protection Act Rule, in addition to the 2020 order, the FTC said in a statement.

In addition to the proposed blanket ban on the monetization of young users' data across Meta’s platforms, the SEC is proposing a pause on Meta’s launch of new products and services until it is found to be in full compliance with the privacy order. The SEC is also proposing new limits on Meta’s use of facial recognition software.

“This is a political stunt,” Meta spokesperson Andy Stone tweeted in response to the order. “We will vigorously fight this action and expect to prevail.”

Meta's stock fell to $232 per share following the order's release. It opened the day at $239.