Hitting Where It Hurts – What’s Going On With Meta Stock Today – Meta Platforms (NASDAQ:META)

Meta Platforms, Inc META shares dropped Wednesday after the  Federal Trade Commission proposed a blanket prohibition preventing Facebook from monetizing youth data.

The FTC alleged that Meta has failed to comply with the order fully, deluded parents about their ability to control with whom their children communicated through its Messenger Kids app, and misrepresented the access it provided some app developers to private user data.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said, “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”

The FTC’s move prohibited Meta from profiting from data it collects, including through its virtual reality products, from users under 18. Meta’s other limitations included its use of facial recognition technology and required to provide additional protections for users.

It is the third time the FTC has taken action against Facebook for allegedly failing to protect users’ privacy. The Commission first filed a complaint against Facebook in 2011.

Price Action: META shares traded lower by 0.65% at $237.75 on the last check Wednesday.

Source link