Social networking giants Facebook continues to reel from the Cambridge Analytica scandal s the Federal Trade Commission says it’s officially investigating the company over potential misuse of the personal information.
This comes after the FTC began a probe last week into Facebook’s admission that it had suspended Cambridge Analytica following their work for the Trump presidential campaign that saw data of as many as 50 million Facebook users being compromised.
There are suspicions the improper handling of Facebook users’ data violated a consent decree reached with the FTC.
“The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook,” said Tom Pahl, the FTC’s acting director for its consumer protection bureau, in a statement Monday.
“Today, the FTC is confirming that it has an open non-public investigation into these practices.”
The impact of the investigation has been massive as Facebook shares fell 5% to $151.27 after FTC made the announcement.
This follows a 14% drop in the company’s shares since the scandal broke more than a week ago, eroding Zuckerberg’s net worth by $10 billion and the company’s market cap by a whopping $75 billion.
Facebook founder and CEO Mark Zuckerberg took out ads in newspapers in the US and UK to apologize for the recent scandal.
“This was a breach of trust, and I’m sorry we didn’t do more at the time,” the ads read. “We have a responsibility to protect your information. If we can’t, we don’t deserve it.”
In a related development Sunday, the website Ars Technica reported that some Facebook users found the network saved years of contact names, telephone numbers, call lengths and text messages on their Android devices.
But Facebook denied the claims, saying it does not collect the content of text messages or calls, but uses the information to rank Messenger contacts so they are easier to find.