FTC Conditional Fine With Facebook Inc (NASDAQ:FB) Acquiring WhatsApp

928

Dallas, Texas 04/11/2014 (FINANCIALSTRENDS) –  Facebook Inc (NASDAQ:FB) intent to snap-up WhatsApp, after its aborted forays into acquiring another popular image-messaging app- SnapChat, has now received approval from  the  country’s highest regulatory body.

FTC conditional nod

Facebook Inc (NASDAQ:FB) has received approval to acquire for $19 billion the indie messaging service with massive user base – WhatsApp. However, FTC has established that both companies will take care, and ensure consistent data collection policies – with comprehensive protection of privacy of users.

Facebook Inc (NASDAQ:FB) Director Rich her letter addressed to both companies has indicated that, “WhatApp has made a number of promises about the limited nature of the data it collects, maintains, and shares with third parties—promises that exceed the protections currently promised to Facebook users.”

In no uncertain terms, the Director in her letter noted that post the acquisition it is now mandatory that both of the companies adopt comprehensive privacy policies.

If either Facebook Inc (NASDAQ:FB) or WhatsApp are not ready to adopt these new policies, then it is likely that these companies will found to be in violation against Section 5 of the FTC Act. Besides, it is also likely that the FTC orders against Facebook too would be in violation.

Facebook Inc (NASDAQ:FB) was directed by the country’s regulatory body, to collect consent of affirmation from its user base.

Facebook has already been hauled-up by FTC previous on separate charges as well as one particular reference to privacy violations, back in 2011. FTC had earlier investigated Facebook Inc to resolve complaints of the social network player deceiving its users, by not complying with its privacy assurances in 2011.

Fresh directions indicate that FB as well as its new team player- whatsApp- should refrain from over promise on the privacy factors, by ‘misrepresenting’ the extent to which this privacy will be deployed on the messaging as well as social network.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.