Did Facebook CEO Mark Zuckerberg Intend To Deceive? | KBIA

Did Facebook CEO Mark Zuckerberg Intend To Deceive?

Jul 28, 2019
Originally published on July 28, 2019 6:04 pm

Updated at 1:23 p.m. ET

Facebook has a long track record in deception: telling people one thing, while doing another. That's according to federal regulators, at least one of whom says the government missed its chance to find out why the company has repeatedly misled its users.

This past week, the Federal Trade Commission decided to enter into a settlement with Mark Zuckerberg without interviewing him first. The FTC secured a $5 billion penalty from Facebook but, FTC Commissioner Rohit Chopra says, the agency sacrificed discovering the truth about the CEO in the process.

"It's still really a mystery to me as to what role [Zuckerberg] played," says Chopra, who opposed the settlement.

The FTC complaint against Facebook highlights a prominent moment when Zuckerberg said one thing while his company did another.

"The thing is, we don't ever want anyone to be surprised about how they're sharing on Facebook. I mean that's not good for anyone," Zuckerberg told the audience of Facebook's annual F8 conference in 2014.

Regulators at the FTC had investigated Facebook for taking the personal data of users and, without consent, handing it off to outsiders — third-party app developers. Following that and other embarrassing revelations, Zuckerberg made a promise.

"Now, everyone has to choose to share their own data with an app themselves," he said. "We think that this is a really important step for giving people power and control."

Sounds great. Only, it wasn't true. According to the FTC, Facebook kept handing over user data secretly — without consent — to dozens of outside developers (like Cambridge Analytica, the political research firm that worked on President Trump's campaign).

It wasn't the only time Zuckerberg misrepresented the truth. In 2018, he did it again — this time not on his own stage, but in front of the entire country.

Zuckerberg — summoned to the U.S. Congress — apologized for enabling Russian interference in the American elections, for helping to spread fake news and hate speech, and for violating the privacy of users.

"It's clear now that we didn't do enough to prevent these tools from being used for harm as well," he testified. "And that was a big mistake, and it was my mistake, and I'm sorry. I started Facebook. I run it, and I'm responsible for what happens here."

Sounds great. Only, in the same month Zuckerberg gave that testimony (it was in April 2018), regulators say, the company began to use facial-recognition tracking on some 60 million users — again, without consent.

The FTC's Chopra voted against entering the settlement with Facebook.

"We cut off this investigation too early, [and] Facebook was willing to pay more money in order to hide Mark Zuckerberg's testimony from this investigation," he says.

Three Republican FTC members voted in favor of settling. The FTC extracted a $5 billion penalty from Facebook. Agency officials say that's more than the government would have gotten in court, if they'd litigated.

Chopra, a Democrat, says his agency underplayed its hand, and missed the opportunity to uncover if Zuckerberg's misrepresentations were intentional. The FTC spoke to Zuckerberg's lawyers, but not to him. He was not required to answer questions or turn over his emails; and the settlement lets the CEO off the hook for the many privacy mishaps the FTC scrutinized. Zuckerberg did not personally face charges for violating an earlier settlement his company had reached with the FTC in 2011, though he could have been.

"Facebook fully cooperated with the FTC's investigation and provided tens of thousands of documents, files and emails—including from Mark Zuckerberg," Colin Stretch, Facebook's general counsel, said in a statement Sunday after this story aired.

The new FTC settlement includes provisions that could hold Zuckerberg liable, through civil and criminal penalties, for any future violations of the agreement with the commission.

Zuckerberg's actions may stand at odds with the philanthropic, altruistic image he's worked hard to cultivate. CEOs break rules all the time. The ousted chief of Uber appeared to take pride in bulldozing his way into cities, assuming the laws that apply to cabs didn't apply to his operation. But Zuckerberg has worked very hard to project the image of model super citizen: Harvard dropout committed to connecting the world with an American brand that's more omnipresent that Coca-Cola; funding woefully neglected school systems; and conducting a listening tour to hear real people.

(Facebook is one of NPR's financial sponsors.)

It bothers Chopra that his agency didn't pursue the truth because Zuckerberg isn't just a CEO. He has structured the stock so that he controls the majority of votes in Facebook. Chopra explained in his written dissent that in other cases, when a chief calls the shots in a company, the FTC takes a hard look at them.

"We didn't even want to look at something that seemed fundamentally important, and instead traded it away for a higher fine, and none of that money will actually go to Facebook's users," Chopra says. The $5 billion goes to the U.S. Treasury, as mandated by law.

Zuckerberg lauded the settlement, saying in a post that his company has a "privacy-focused vision" and that, while Facebook already works hard to protect people's privacy, "now we're going to set a completely new standard for our industry." He did not mention that his company fought tooth and nail, according to regulators, against the fine and new external oversight the deal imposed on Facebook.

Meanwhile, Zuckerberg's team is on Capitol Hill, trying to get permission to mint money — a new digital currency. This cannot succeed without the public trust. Facebook is making the case that lawmakers and regulators should trust it. But Chopra says he doesn't trust Zuckerberg or his company.

NPR business desk intern Amy Scott contributed to this report.

Copyright 2019 NPR. To see more, visit https://www.npr.org.

LULU GARCIA-NAVARRO, HOST:

This past week, the Federal Trade Commission decided to enter into a settlement with Mark Zuckerberg, head of Facebook, which I'll say here is an NPR sponsor. The FTC entered into that settlement without interviewing Zuckerberg first. And as NPR's Aarti Shahani reports, the government may have missed its chance to find out more about Facebook's practices.

AARTI SHAHANI, BYLINE: The year was 2014. Mark Zuckerberg was onstage at F8, Facebook's annual conference, with a promise to users.

(SOUNDBITE OF ARCHIVED RECORDING)

MARK ZUCKERBERG: The thing is we don't ever want anyone to be surprised about how they're sharing on Facebook. I mean, that's not good for anyone.

SHAHANI: His company had gotten caught taking the personal data of Facebook users and, without consent, handing it off to outsiders, third-party app developers. So this was his promise.

(SOUNDBITE OF ARCHIVED RECORDING)

ZUCKERBERG: Now we're going to change this, and we're going to make it so that now everyone has to choose to share their own data with an app themselves. So we think that this is a really important step for giving people power and control.

SHAHANI: Sounds great - only, it wasn't true. According to the Federal Trade Commission, Facebook kept handing over user data secretly without consent to dozens of outside developers. Mark Zuckerberg said one thing while his company did another. It was not an isolated incident. In 2018, he did it again - this time, not on his own stage but in front of the entire country.

(SOUNDBITE OF ARCHIVED RECORDING)

ZUCKERBERG: It's clear now that we didn't do enough to prevent these tools from being used for harm as well.

SHAHANI: Zuckerberg, summoned to the U.S. Congress, apologized for enabling Russian interference in the American elections, for helping to spread hate speech and also for violating the privacy of users.

(SOUNDBITE OF ARCHIVED RECORDING)

ZUCKERBERG: And that was a big mistake, and it was my mistake, and I'm sorry. I started Facebook. I run it. And I'm responsible for what happens here.

SHAHANI: Sounds great - only, in the same month Zuckerberg gave that speech, regulators say the company began to use facial recognition tracking on some 60 million users - again, without consent. Rohit Chopra is an FTC commissioner who voted against entering the settlement with Facebook.

ROHIT CHOPRA: It's still really a mystery to me as to what role he played.

SHAHANI: The majority of his colleagues - three Republicans - voted in favor of settling. Facebook got fined for $5 billion. The regulators say that's more than they would have gotten in court if they'd litigated. Chopra, a Democrat, says his agency underplayed its hand and sacrificed the truth in the process.

CHOPRA: We cut off this investigation too early. Facebook was willing to pay more money in order to hide Mark Zuckerberg's testimony from this investigation.

SHAHANI: The FTC spoke to Zuckerberg's lawyers, never to him. He was not required to answer questions or turn over his emails. And the settlement lets the CEO off the hook for the many privacy mishaps the FTC scrutinized. It bothers Chopra that his agency didn't pursue the truth. Zuckerberg's actions may stand at odds with the philanthropic, altruistic image he's worked so hard to cultivate. And he isn't just a CEO. He structured the stock so that he controls the majority of votes in Facebook. Chopra says in other cases, when a chief calls the shots in a firm, the FTC takes a hard look at him or her.

CHOPRA: We didn't even want to look at something that seemed fundamentally important and instead traded it away for a higher fine. And none of that money will actually go to Facebook's users.

SHAHANI: The $5 billion goes to the U.S. Treasury. Zuckerberg lauded the settlement, saying in a post that his company has a privacy-focused vision. Facebook did not respond to Chopra's criticisms when NPR asked. Meanwhile, Zuckerberg's team is on Capitol Hill trying to get permission to mint money, a new digital currency. This cannot succeed without the public trust. Facebook is making the case that lawmakers and regulators should trust it. Chopra says he doesn't trust Mark Zuckerberg or his company. Aarti Shahani, NPR News. Transcript provided by NPR, Copyright NPR.