The next time users visit Facebook, things might not look different, but big changes are brewing behind the scenes. The FTC’s record-breaking $5 billion settlement requires Facebook to conduct a massive overhaul of its consumer privacy practices. The settlement also makes major changes to Facebook’s operations and CEO Mark Zuckerberg no longer has sole control over privacy.
First, some background. Facebook is a social networking site, but it makes money by serving up targeted ads based on users’ personal information. Many consumers are hesitant about sharing certain data, so Facebook calms that concern by promising that people can control the privacy of their information through the platform’s privacy settings.