Tomahawk, WI 01/03/2014 (BasicsMedia) –Facebook Inc (NASDAQ:FB) could end up paying millions of dollars in fine for its alleged violation of members’ privacy. Over the past two years the company has paid about $30 million in settlements related to privacy violation lawsuits.

Of late tech firms have become increasingly vulnerable for their handling of users’ data. Google Inc (NASDAQ:GOOG) is yet another tech company that is faced with a string of lawsuits over illegal dealings in users’ data available in its various Internet services.

The company is for example accused in the U.S. for violation of the wiretapping law whereby it is said that it accesses content share through its Gmail service without the consent of the users. Google Inc (NASDAQ:GOOG) is also facing privacy challenges in Europe of its handling of users’ information.

Online user privacy is one of the hot issues nowadays. The alleged spying by the U.S. National Security Agency has opened a floodgate of accusations against tech companies. Users have become more sensitive about their online history and some are taking the matter into their own hands by pinning down the companies they believe have violated their privacy and this s where Facebook Inc (NASDAQ:FB) is finding itself now.

The big issue

Two Facebook Inc (NASDAQ:FB) users are suing the social media giant for violating their privacy and that of millions of other U.S. users of the service. According to the documents field for the class action, the two users claim that Facebook Inc (NASDAQ:FB) routinely access content of private messages sent by members, thus breaching its own privacy policy.

The company is accused of going as far as opening the shared links in the private messages. But the question is; why would Facebook Inc (NASDAQ:FB) go into such lengths? It is important to note that the company has vehemently refuted the claims according to a statement issued by the spokeswoman Jackie Rooney which says that “the allegations are without merit”.

Merit or not, the company is claimed to have founded a new way to gain insight into users’ profile, and this way, it is able to make good deals with advertisers. In any case, it is claimed that it is this practice of intercepting private messages that has kept Facebook Inc (NASDAQ:FB) ahead of peers in terms of ad revenue earnings.

The business

Of late marketers have sought to deliver targeted ads to Internet users. This way they are able to improve their ad performance and Internet-based service providers have been playing along to ensure that their advertisers not only get value for their money, but that they also improve their ad revenue.

Facebook Inc (NASDAQ:FB) is not leaving anything to chance in going for the larger portion of the Internet ad revenue. The company is improving in every front and the aim is to attract value advertisers who can boost its earning. For a very long time the company has lacked in automobile industry after General Motors Company (NYSE:GM) recoiled its ads on the site.

However, it is gradually penetrating the auto industry where many market studies have predicted to be the next big online ad purchaser.


As to whether Facebook Inc (NASDAQ:FB) finally ends up paying for the alleged privacy violation depends on how its lawyers handle the case, or better still, how the plaintiffs present their argument. According to the docoments of the lawsuit, the company is being asked to stop its bad habit and to pay $100 for each day of violation to every affected user.

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