Meta sued the Federal Trade Commission (FTC) claiming that the in-house courts are "unconstitutional", the company is also attempting to stop the regulations to create new restrictions on monetization.
Meta Challenges "Unconstitutional" Authority of FTC
According to the filing, the company filed the lawsuit to challenge FTC's authority formally. Meta emphasized that it violates due process since the commission holds the roles of prosecutor, judge, and jury in the same case.
The lawsuit is also aimed at stopping the FTC from reopening the $5 billion privacy violation settlement from 2020. Last Monday, a federal judge ruled that the FTC will be allowed to redesign the 2020 privacy settlement, making it easier for the agency to propose stricter new rules to regulate the social media giant.
Meta has now requested the U.S. District Court for the District of Columbia to permanently block the FTC from creating new restrictions on the company such as banning the monetization of data from users under 18.
FTC Claims Meta Violated 2020 Settlement
Meanwhile, the FTC argued that the social media giant has repeatedly violated the 2020 settlement, in terms of user privacy. Moreover, the act of monetizing the data of young users is a violation of the Children's Online Privacy Protection Act (COPPA).
After the go signal from the federal judge, the commission is now also seeking to restrict Meta's use of facial recognition. The FTC is also looking to suspend new products and services of the company until a third party completes an audit and certifies that the company is complying with its privacy obligations.
"The company's recklessness has put young users at risk, and Facebook needs to answer for its failures," the director of FTC's Bureau of Consumer Protection, Samuel Levine stated.
While the FTC is busy regulating and investigating big tech companies, the regulators are also met with complaints from these companies claiming that the commission is an example of "government overreach."
Related Article : FTC to Hire Child Psychologist to Guide Internet Regulation
