The vast majority of consumers do not expect Facebook (FB) to change its behavior regarding consumer privacy concerns despite having to pay a $5 billion fine ordered by the Federal Trade Commission, according to the latest IBD/TIPP Poll published by Investor's Business Daily. Facebook stock sank amid a broad sell-off Monday.
A total of 352 consumers polled said they closely followed the Facebook settlement story. Of those, 70% expressed pessimism the settlement prevents the misuse of personal information by the company in the future.
Last month, Facebook agreed to pay the $5 billion penalty and abide by sweeping new restrictions imposed by the FTC over allegations it deceived users about its ability to control the privacy of their personal information. The penalty marks the largest FTC fine ever imposed for consumer privacy violations. It also grants federal regulators widespread access to Facebook's business decisions.
The FTC initiated its probe 16 months ago. It followed revelations that the political consulting firm Cambridge Analytica improperly gained personal details on 87 million Facebook users. The investigation expanded to include a host of additional privacy mishaps.
The FTC settlement also requires Facebook Chief Executive Mark Zuckerberg and a designated compliance officer to submit to quarterly certifications.
IBD/TIPP Poll Focus
The IBD/TIPP poll surveyed 902 people age 18 and older across America on various hot-button issues. The survey includes the monthly Economic Optimism Index as well as the Presidential Leadership Index. Of those 902, 39% said they were following the Facebook story closely, narrowing the poll's focus on the Facebook question to 352 people.
The social networking giant has been hammered by repeated investigations about data privacy issues for more than a year.
A previous IBD/TIPP Poll completed in April said more than one in 10 Facebook users have quit the social network due to concerns over privacy and protection of their data.
Facebook Stock Moves
While Facebook stock is down about 16% since hitting a record high of 218.62 on July 25 last year, shares are up 48% since hitting a 16-week low of 123.02 on Dec. 24. Facebook stock fell 3.9% to close at 181.73 on the stock market today, on a down day for stocks overall.
Facebook beat second-quarter earnings and revenue estimates reported last month, but executives sees slowing revenue growth going forward.
The IBD/TIPP Poll took place from July 25 to Aug. 1.
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