meantime, facebook coo sheryl sandberg addressed this year's m.i.t.ass, and pushed technology as a force for good it could be misused by malicious actors and reaffirm to facebook's commitment to owning their mistakes. >> when you're on your mistakes, you can work harder to correct them and to prevent the next one. that is my job now. it will not be easy or fast, the we will see it through. emily: coming up, exposing the lie behind what was one of silicon valley's hottest startups. the man who blew the whistle, next. this is bloomberg. ♪ ♪ emily: it was supposed to be the silicon valley startup that would revolutionize the medical industry, making its investors very rich. with just a pinprick of the blood, theranos was heralded as a lifesaver that would diagnose diseases requiring more complex tests. there was one problem, a big one, it was a lie. it had a peak valuation of $9 billion and had a charismatic leader. a wall street journal reporter began exposing their nose and its fantastical claims and now the company's future is perhaps nonexistent. the

now, coo sheryl sandberg is one of the us officials invited to attend a hearing in july, looking at facebook's such situations in the future. when we don't know if she will accept the invitation, there is a former facebook executive who has already talked to european officials about how this could have been avoided and he wants to keep holding the social media giant accountable for its actions. that would be santa. , who isndy parakilas now the chief strategy officer for an organization seeking more ethical technology. also with us, sarah frier, who covers facebook. sandy, thank you for joining us, you are just back from brussels. you call this a disaster. there are many thousands of facebook employees not saying anything, what compelled to just doubt -- to speak out? sandy: i've seen the tremendous amount of harm that is being done around the world as a result of some of these business practices, things like the impact on elections, not just in the u.s. but brexit. some of the violence that has taken place in sri lanka and other places. seeing that, it drove me to want to come forward and to

in april, savanna asked facebook coo sheryl sandberg e possibility of users opting out of sharing dataopt out. not one at the highest level. that would be a paidproduct. >> reporter: the california law allows for comny to compensate consumers for their data. in a statement to nbc news, facebookreiterates they do not sell people's data and while they say it's nott, perfhey do support the california law, and look forward to worng with policymakers to protect consumers and promote responsible innovation. but a trade association whose members include facebook, amazon, google and microsoft tells nbc news it's concerned about the lack of public discussion and process surrounding what they call a far-reaching bill. >> and how did these tech t companies a public, users, how do they feel about the new regulation? >> reporter: a mixed reaction. says theof california law actually utterly fails to protectva p basically it doesn't go far enough. all eyes on silicon valley. ,the questi will they only change the way they run things for users here in california or overhaul the way their business model