It was expected that policy updates declared by Facebook last week would be implemented by today. However, Facebook is now looking forward to implementing policy next week.
Reputed short-seller Spruce Point Capital Management released its latest short report this week. The firm is shorting Canadian dairy and grocery manufacturer Saputo. Spruce Point chief Ben Axler believes the company is entering a phase of declining growth and highlights the financial stress and growing challenges he sees it facing, not only in Canada but Read More
Decision to delay comes after objection by privacy groups
It is worth noticing that the social networking giant’s decision to delay the policy update comes after six consumer privacy group came together to ask Federal Trade Commission (FTC) to take notice of the move and ban Facebook from doing so.
The point that the group brought forth is that this privacy update by Facebook will encroach upon the 2011 settlement between the FTC and Facebook.
As per the statement, under the newly revised policy Facebook Inc (NASDAQ:FB) will hold the right to use any individual’s name, profile picture, content and information for advertisements, which will be against the settlement between the company and the agency.
The settlement referred to in the letter came after Facebook was found violating its own policy, which promised users it would not share personal information with third parties such as advertisers.
User uproar over new updates by Facebook
Privacy groups are opposing the new policy, under which Facebook Inc (NASDAQ:FB) will automatically get the right to use users’ data. Users can stop Facebook from doing so, but to do so, users will need to go through a process which has been made more technical by Facebook.
Under the previous policy, users were given the right to control their names, likeness and personal information from being used for commercial purposes.
Facebook’s new policy also covers users less than 18 years old by saying that the legal guardians or parents of such users automatically agree to the terms and conditions on the user’s behalf.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, said that almost every Facebook user commenting on the new policy has expressed his unwillingness to follow the policy. The Electronic Privacy Information Center is one of the members of the group demanding FTC to ban Facebook this policy.