Current:Home > StocksFacebook's new whistleblower is renewing scrutiny of the social media giant -FutureFinance
Facebook's new whistleblower is renewing scrutiny of the social media giant
View
Date:2025-04-16 08:21:58
A data scientist named Frances Haugen has revealed herself to be the whistleblower behind a massive exposure of the inner workings at Facebook.
Prior to appearing on 60 Minutes on Sunday, Haugen, a former employee at the social media giant, kept her identity a secret after sharing thousands of pages of internal Facebook documents to the media and federal law enforcement.
Haugen's planned testimony this week, as well as the information she shared so far, suggests the company deceived the public and its investors about its ability to deal with hate speech and misinformation on its platform.
"Facebook over and over again has shown it chooses profit over safety," she said during the interview on Sunday.
Haugen's document dump, her testimony scheduled in front of Congress this week, and an ongoing investigative reporting series into the company are potentially pushing Facebook into its biggest crisis yet. The negative spotlight also comes as Republicans and Democrats on Capitol Hill are increasingly scrutinizing Facebook's actions.
The Facebook Files reveals major issues
Facebook issued a lengthy statement from director of policy communications Lena Pietsch titled "Missing Facts from Tonight's 60 Minutes Segment."
She pointed to Facebook's investment to monitor for harmful content; disputed the way Facebook's own research on teenagers' mental health has been reported; and rejected the claim that the social network has furthered political polarization.
Recent reporting by The Wall Street Journal had already put Facebook in the spotlight. Haugen shared thousands of Facebook documents with the newspaper that went into the creation of the Facebook Files series.
So far the newspaper has revealed how anti-COVID-19 vaccine information flourished on Facebook. It also reported how separate rules allegedly apply to celebrities and politicians on the site. Facebook allowed VIP users to, for a time, avoid penalties for bad behavior, according to the report.
Haugen has also detailed how she says Facebook quickly disbanded its civic integrity team — responsible for protecting the democratic process and tackling misinformation — after the 2020 U.S. election. Shortly afterward came the Jan. 6 insurrection at the U.S. Capitol, in which organizers used Facebook to help plan.
"I don't trust that they're willing to actually invest what needs to be invested to keep Facebook from being dangerous," Haugen told 60 Minutes.
Remember Cambridge Analytica?
Facebook started in CEO Mark Zuckerberg's Harvard dorm. Now it's estimated to be worth $1 trillion. As it has grown, so too have its controversies.
The company faced massive blowback from users, politicians and regulators following the Cambridge Analytica debacle more than three years ago.
A whistleblower named Christopher Wylie went public in 2018 exposing how millions of Facebook users' personal data was accessed, without the users' consent, by the U.K. firm Cambridge Analytica. The now-defunct company used this information to attempt to influence several elections around the world, including the U.K.'s Brexit vote on leaving the European Union.
Three years later, Facebook, which has maintained no liability in the Cambridge Analytica dealings, walked away from the entire episode relatively unscathed.
Facebook paid a $5 billion penalty to the Federal Trade Commission to resolve a sweeping investigation into its privacy practices prompted by the scandal, as well as a £500,000 (about $643,000) fine to the U.K. government. But critics said the FTC fine, while the largest privacy settlement in the agency's history, amounted to a slap on the wrist, given that it equated to about a month of revenue for Facebook.
In 2020, Facebook was criticized yet again for how it regulates political ads and misinformation on its platform, but no regulatory changes came of the criticism.
Lawmakers talk regulations
After the Haugen interview aired on 60 Minutes, Connecticut Sen. Richard Blumenthal shared on Twitter, "Facebook's actions make clear that we cannot trust it to police itself. We must consider stronger oversight, effective protections for children, & tools for parents, among the needed reforms."
For years, Congress has been stuck in an ongoing debate over how best to regulate Big Tech — even as Facebook says its welcomes updated regulations.
In June, House lawmakers introduced sweeping antitrust reforms aimed at Amazon, Apple, Facebook and Google. The House Judiciary Committee approved the bills, but they have not been brought for a floor vote.
The scrutiny Facebook now faces could push lawmakers to act.
During a hearing last week, lawmakers examined allegations that Facebook's own internal research showed its platforms are negatively affecting the mental health of millions of mostly teenage girls.
"This is your company's reporting. You knew this was there. You knew it was there, but you didn't do anything about it," said Sen. Marsha Blackburn, R-Tenn., the subcommittee's ranking member, referring to internal documents about the prevalence of sex trafficking on Facebook.
Facebook has said the research was taken out of context.
Haugen contacted state officials and the SEC
Other regulatory agencies aren't waiting for Congress.
Facebook is facing an antitrust lawsuit from the Federal Trade Commission, which is demanding that the company sell or spin off Instagram and What'sApp.
With these latest allegations, Facebook could soon be facing heat from other regulators.
Haugen and her attorney John Tye shared that she has filed at least eight complaints with the U.S. Securities and Exchange Commission.
These complaints focus on the prevalence of hate speech on Facebook, misrepresentations about the site's role during the Capitol insurrection, and the dangers children face on the site.
Tye, who spoke with NPR, said those allegations involve the difference between what Facebook knew about its platform and what it said publicly. He said misleading investors is a crime under U.S. securities law.
Haugen's documents have also been shared with the state attorneys general for California, Vermont, Tennessee, Massachusetts and Nebraska, Tye told The New York Times.
It's unclear whether the SEC or those state attorneys general plan to address Haugen's complaints.
Editor's note: Facebook is among NPR's financial supporters.
NPR's Bobby Allyn and Shannon Bond contributed to this report.
veryGood! (38)
Related
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- Fantasy football buy low, sell high Week 10: 10 players to trade this week
- Wisconsin Assembly to pass Republican bill banning race, diversity factors in financial aid for UW
- Why Bachelor Nation's Carly Waddell Says Classmate Lady Gaga Drove Her Crazy in College
- Federal hiring is about to get the Trump treatment
- Patrick Dempsey named Sexiest Man Alive by People magazine
- Not your average porch pirate: Watch the moment a bear steals a family's Uber Eats order
- Do you have a $2 bill lying around? It could be worth nearly $5,000 depending on these factors
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- Why it may be better to skip raking your leaves
Ranking
- What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
- Special counsel says Trump's attempts to dismiss federal election case are meritless
- Serena Williams accepts fashion icon award from Kim Kardashian, Khaite wins big at 2023 CFDA Awards
- Researchers discover oldest known black hole that existed not long after the Big Bang
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- 60 hilarious Thanksgiving memes that are a little too relatable for turkey day 2023
- NCAA, Pac-12, USC set to begin trial today with NLRB over athletes' employment status
- Why It Took The Crown's Elizabeth Debicki 30 Hours to Transform Into Princess Diana
Recommendation
Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
Second suspect charged in Connecticut shootout that killed 2, including teenager, and wounded 2
Killer whales sink yacht after 45-minute attack, Polish tour company says
Go digital or else: Citibank tells customers to ditch paper statements or lose digital access
Senate begins final push to expand Social Security benefits for millions of people
Highlights of Trump’s hours on the witness stand at New York civil fraud trial
Syphilis cases in US newborns skyrocketed in 2022. Health officials suggest more testing
Megan Fox Shares She Suffered Miscarriage While Pregnant With Her and Machine Gun Kelly's Baby