the ftc is serious. state actors are serious about taking aggressive action against those people that are initiating these unwanted robocalls. so, there's more work to do, but the fcc, ftc, state and industry partners, we are all committed to taking action. we hear from consumers what a problem this is. we also understand the scope and nature in terms of how difficult it is for us to solve it but we're committed to moving forward. so i welcome today's event and the additional ideas and areas for action that it's identifying. and with that, i will move off the stage and let the true experts on this continue the really productive discussion. i do look forward to seeing the continued efforts of these types of groups in seeing where at the fcc we can continue to take action to protect consumers. so, thank you. >> thank you, commissioner carr. our second panel is entitled recent regulatory and enforcement efforts. it is moderated by tom paul, acting director of the ftc's bureau of consumer protection. i invit

this morning will hear remarks from fcc and ftc leadership. we will also hear from a diverse group of speakers on three moderated panels focusing on challenges facing consumers and industry today i'm a recent regulatory enforcement efforts, solutions and tools for consumers. today's policy forum is being streamed live with captions on the sec website and will be posted for later viewing once complete. with that, it is a great pleasure to introduce our first featured speaker, sec chairman mr. pai. [applause] >> thank you so much, patrick. good morning. welcome to the fcc. thank you all for coming. i apologize at the outset that i'm in the midst of a cold so i've been alternating between sounding like barry white and katharine hepburn. nonetheless, i will persist. special thanks to our cohost the traffic team from the ftc and our fearless leader, my friend acting chairwoman and i understand she will be appearing by video. she's not able to be here in person today. thank you as well to my colleagues for taking the time to be here and speak this m

with the ftc in 2011. he thought facebook would be recidivists. the stock price aims to react when it the ftc is engaging in a 3%be, now it is down only and that is presumably on the response that nbc is reporting facebook says it's committed to protecting personal data. it says -- it seems facebook has to verbally give a mea culpa and the stock improves. sara: there's a lot of question about what can they secure in terms of people's privacy. what promises can they make. the fact that the ftc has the company under distant -- under consent decree means they can look more deeply into what promises to users are and whether it violated terms of that decree. a lot of questions in investors and users minds about the standard for privacy for facebook users. vonnie: one of the things nbc is reporting, the facebook representative says it's welcoming the opportunity to address these issues. likebook is a most acting it's a choice. the fcc -- the ftc goes in, you drop everything. sara: the ftc is an enforcement agenc

guest: there are only two commissioners at the ftc. those commissioners are on their way out, so there is not a lot of whole -- leadership. the person in charge of the facebook investigation is actually operating in an acting capacity, so he has not been confirmed by congress. that is the case with a lot of leadership. in the preliminary stages of this facebook investigation, that should not matter too much. the career people are going to be able to keep doing their jobs , going through the activities of facebook, and figure out how much data was taken inappropriately. there is an issue when it comes to resources. apparently the ftc only has around 60 people working on data privacy practices full-time. contrast that with other agencies, like the consumer protection bureau, they have a much larger privacy office. the same with hhs, their privacy office. it really is dwarfed by the european regulators who have entire organization set up. there's a question whether the ftc needs a significant increase in resources. there are parts of the

how does that play into what the ftc is looking into? sara: as sarah mentioned, after the ftc did the 2011 consent they have got to get the express informed consent. users have got to be very careful with what they are agreeing to. what the ftc will look at and we will not have any updates along the way because they did say it is a nonpublic investigation, but they are going to go back and look at how the data was transferred, first to the research firm and then to cambridge analytica. they will see a facebook wiley to the terms of the agreement. variousow, you now, lawmakers have been calling on mark zuckerberg to testify and he said he will testify if he is the right person. on theresentative judiciary committee had this to say about legislation. >> i believe legislation should be written in order to give the tech industries overall guidance from the united states congress, me, laws, and believe there are congress persons who are strong advocates with the strength of the tech industry, matching up with those who are strong constitution

if you have an expert agency that can react in real time as opposed to the ftc that you have to prove unfair and deceptive practices than two or three years later after your business is gone you maybe get a decision. people want action and results and decisions made as quickly as possible. what agency is the best to do so? i think if you ask and answer yourself that question objectively you will see the buck needs to stop at the fcc and april 28 things may change. >> so what stage are we in with neutrality? >> we did publish the order in the federal register which the go button was hit with that so now a number of parties are filing suit including the ones i mentioned individuals as well as lawmakers so you will see robust activity as it relates to those members of congress which is why you are seeing more activity because there is a timetable out for the dissent eight months after it is published in the federal register and so you are seeing a very dynamic reaction to a very fast moving process to when things are supposed to change for all of us on apri april 28. >> but only a portio

know about thewe ftc investigation and how it might proceed?arah's.ere are two first --to certify our sarah frier. sarah: an context of all the work the ftc has done on facebook and not done on facebook and not been on facebook, there was a 2011 consents created that facebook would have with the ftc where it had to alert users if their data was going to be used and get their explicit permission. fined, soey could be the ftc is looking if they deserve to be fined for the data that ended up in the hands of third parties who did not have a consensus to access it. emily: facebook can always put this back on users while he opted in, even if you did not understand what you are opting and for. how do that play in to what the ftc is actually looking into? as sarah mentioned, they did have to get express informed consent so users have to be aware of what they are agreeing to with regards to the data. what the ftc will look at come and we want to have updates along the way because they said it is a nonpublic investigation -- but they are going to go back

explain how a facebook quiz app resulted in an ftc investigation and calls for congressional hearings? we are here because of wasridge analytica which used by president trump campaign and other campaigns before that. they put together graphic profiles of voters. collect your hopes, fears, and dreams and present that in the mustering my way possible. they put together an act that was essentially a personality quiz that was downloaded by about 270,000 users on facebook. in 2014 and 2015, if you're a third-party apps developer like the contractors that cambridge -- cambridge analytica was able to use, you are not only -- you are able to gather information from users. they were able to gather the information from 30 million users. this has been an issue for the ftc in recent weeks because of the criticism by l. -- criticism by capitol hill. >> we will unpack some of that history but can you explain cambridge analytica's campaign -- relation to the trunk campaign? was led by former campaign adviser steve bannon and then run by the trunk campaign. what is interesting is that they use's grap

such a foundation for the ftc's modern privacy program.he ftc insisted it would monitor this agreement carefully and would not hesitate to impose severe civil penalties if there was an infringement. if i had to guess right now, i would say there is a likelihood there will be some fine imposed. as you mentioned the economic exposure is astronomical. >> astronomical possible exposure, but in reality the fines we'll see what they are, there is a bigger question here, obviously, tony, that question is, are more regulations coming, not just for facebook, but tech companies in general. are people a year from now who access those accounts be safer, will their privacy be protected more than now, where does that stand is it. >> yeah. this is the big question in washington, d.c. it's what our lawmakers and federal regulators going to learn from this facebook incident and will this finally be the thing that pushes members of congress to adopt some form of comprehensive on-line privacy law, the likes of which have alluded lawmakers because of lobbying

but what is also clear is what is still troubling to me, that the ftc is still not the expert agency. it still is not the agency that has any background when it comes to common carrier or net neutrality regulation. the fcc is still the agency that does not answer or come into play unless a harm is done and unless you can prove unfair or deceptive practices. those are very high hurdles for mignon clyburn's security system to be able to realize or to be able to afford to bring to the ftc. >> just to play devil's advocate, the ftc has hired, you know, numerous technologists over the years and in recent years has become a very big player in the data security and privacy space. does that not factor into your analysis? >> guest: well, one of the reasons why we have a series of memoranda of understanding is because we've recognized that their strength and and ability to augment or close our weaknesses at both agencies. so we work cooperatively all of the time. and so the biggest thing for me is to not have any gaps by way of regulatory authority or protection. and so that's why on the one ha

we know that the ftc is investigating. what is the issue that the ftc is probing for?> when you sign up for facebook, you come into a pact with facebook about what data you will provide voluntarily to facebook and facebook will then with that data and use it certain limitations and constraints. the question is whether that agreement was violated by the ability of a third-party, the political consulting company. question is, did facebook have the responsibility to notifies users that its data was being used this way? if they did, why didn't they do that? there is uncertainty here and was rattling investors that i talked to over the last day or so is that we had not heard anything from mark zuckerberg or sheryl sandberg. that lack of getting in front of this issue is creating a level of uncertainty that the stock does not like. shery: what about that we are hearing from facebook and they keep insisting that it's not a data breach westmark how big a problem is that? >> that's a big problem. one of the first responses from the company was a tweet from an executive trying t

because the ftc is no longer, our partner. off. >> you are saying the ftc backed off?. >> reporter: backed off he claims during a crucial time in negotiations with the hotel chains. >> we were heading towards, what i thought would be a pretty fair settlement. >> really? >> yep. >> election hit. and then awful a sudden, you know, the hospitality industry sort of dug in against our position. >> the cbs "overnight news" will be right back. ♪ tired of wrestling with seemingly impossible cleaning tasks? using sprays in the bathroom can be ineffective. try mr. clean magic eraser. simply add water, to remove soap scum and grime. try mr. clean magic eraser. hey, need fast try cool mint zantac. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. nexium can take 24 hours. try cool mint zantac. no pill relieves heartburn faster. try the deoderant saving millions of clothes. degree ultraclear black + white. no yellow stains on white clothes. no white marks on black clothes. try degree ultraclear black + white. it won't let you down. >

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the ftc may want to know and how it could affect the social media platform we're joined this morningmissioner and former facebook adviser mosul thompson thanks for being with us today good to see you. >> happy to be here. >> nonpublic investigation, what do we think the ftc is after >> well, it's interesting. i think that they're going to want to know what happened, they're going to want to know why it happened and they're going to want to know who did it so i think they're -- i'll put that on the backdrop of a consent order that was issued in 2011 now, in part of that consent order, facebook agreed to over the next 20 years, provide an audit every two years. so the ftc and facebook have a long-standing relationship and it's not just facebook, it's also google has similar things and snapchat so this is a larger question of what happens in the app space and what happens with apps who crib information and may use it for purposes that they even haven't discuss disclosed or haven't gotten permission to use the information for. >> right you make the point the ftc is in place to make sure

the ftc says no comment.in about three hours, facebook is hosting a last-minute internal meeting with paul gruel, facebook's deputy counsel he's expected to lead the meeting and take employee questions. it's my understanding that ceo mark zuckerberg is not expected at today's meeting but he does host an all hands meeting every friday afternoon he's sure to face more questions then yesterday facebook shares -- that decline of nearly 7% was as a range of lawmakers from the eu, uk and capitol hill raised red flags and asked for investigations and for zuckerberg to testify. while analysts are questioning the impact of potential regulation and the response of advertisers and consumers. though cambridge analytica, the data firm that allegedly illegally purchased data from about 50 million facebook users denies wrongdoing saying it was working in good faith and cooperated with facebook after it was alerted that data protection regulations were broken facebook also denies any wrongdoing, the only exec who has spoken

they want to answer the ftc's questions. stephen: a looook at the markets this hour, i it announcing that. theytors get relieved that are talking trade. got strong gains across london, paris, and frankfurt in training. one of the companies seen gains is the swiss drugmaker. it's up to percent. it was selling its stake in a joint venture for $13 billion. the deal saw them pass into the british companies control. it's down 5% in sweden. pretax rockets fell 60% in the first three months. that is compared to 2017. they were hit by poor sales, discounting more stock. -- we're moving on to monetary and france. there was a delivery deal. amazon prime will allow you to order your groceries online and have them delivered to your house within two hours. that's a service you will quite like. it's good for the online grocery sales. they lag far behind britain and the united states. it's a big thing for people who signed up for amazon. thomas: those doing deals have seen bonuses jump. please stand by the biggest pay rise, the new york st

will that satisfy the ftc? is that enough? david: no.ngs are required already by the decree. it is good that they finally made this announcement, but it is too little, too late. to impose veryg substantial civil penalties on facebook, in my view. they will enter into a much tighter, much more restrictive controlling decree because facebook has proven that no matter what they keep on saying, they are either incapable or unwilling to provide the protections to safeguard consumer private data. you say to the company this is the consent decree, the company is then supposed to self police, but this is facebook's argument, we will self police from now on, but they don't. it is the status quo, right? how does the ftc police a consent decree? the fine here could be astronomical. under the law, every violation of a consent decree gives rise to as much as a $40,000 civil penalty. $40,000 by 50ply million people, you get a very large number. vonnie: we are talking about a $485 billion market cap company. even if the fine is humongous, will it put a

that is the second issue ftc will look at with facebook.will say, did you or did you not act in accordance what we set out in 2011? the ones that you signed on to be committed to? again millions of dollars in fines potentially there. then of course as we've been covering, there are two class action lawsuits already gaining steam. so one from investors, one from shareholders and at least 3 states attorneys general have sent a bipart -- bipartisan letter to ceo mark zuckerberg. whether you're inciting government willingly or unwittingly perhaps in the facebook's case into the way you do business it is never really a great sign, is it, neil? neil: it can always be overkill. good intentions can sometimes get magnified here. deirdre, thank you very much. >> sure. neil: that is one thing that worries jonathan hoenig, that the long arm of the law, the government could really affect an entire industry here. jonathan, what do you think of what is talked about? >> it is happening, neil. i'm just getting an alert that cook county will be suing faceboo

news onbreaking facebook, mark, we now have confirmation from the ftc that it has opened a nonpublic on facebook's practices. it says taking recent press reports on facebook very seriously and it has this probe ongoing. this of course after we found out last week that according to sources, there was an ftc investigation open. facebook is down 3.5%, it had been lower all day, it had been the worst performer in the s&p 500 all session. continues to become it is even as stocks roar back in general, really regaining much of the losses we saw on friday. the tao of 1.5% just off session 354 points. the s&p 500 is up 35 points, 1.4% and the nasdaq composite index is also a 1.5%. the vix is about 23 today, but it is down just slightly from friday's close. this is bloomberg. ♪ vonnie: facebook is on the decline, down almost 4% to reach a session low as the federal trade commission says it has opened a nonpublic probe of facebook's practices. confirmationial from the ftc that it is concerned about privacy practices and it says it has taken recent press reports on facebook very seriously. and i

as opposed to the ftc, they have those unfair deceptive practices. maybe you will get a decision. want action. they want results. they want decisions made as quickly as possible. i think if you answer that question objectively you will look at the fcc. on april 28, things may change. >> what state are we on for the net neutrality debate? >> we publish the order and the federal register. button was hit, including the ones that i have named. lawmakerss as well as and the like. you are going to see robust activity. clock is ticking as a relates to those members of congress, that is why you are see more activity with that act after they must it has published in the federal register. you are seeing a very dynamic reaction to a very fast-moving process going up to when things are supposed to change. i understand only a portion of the rules will be going into effect in april. the rest of the changes will not be taking place until the fcc submits additional paperwork or they process additional paperwork. what can you tell us about when the rest of it will happen? will have to ask the chai

not, so there was some clarity is alsoeir, but what clear and what is still troubling to me is the ftc is still not the expert agency. it is still not the agency that has any background when it comes to common carrier or net neutrality regulation. the sec is still the agency that is still thefcc agency that does that. those are high >> watch the communicators on c-span two. next, on american history tv, we learn about muslim and arab culture in detroit. sally,, center for arab american studies. we recorded this interview at the american historical association annual meeting in washington dc. it is just over 15 minutes. sally teaches history but is also the

reporter: and 2011, facebook agreed with ftc with datasharing third-party apps. they violated that in the watchdog until now has shown no teeth. >> a facebook had complied with this consent order and the ftc had done its job and enforce it, this whole mess with cambridge analytics that never would've happened. >> facebook apologize to many users already lost trust. >> this isn't a personal issue. it's about public policy, consumer harm, consumer protection. >> the house energy committee asked zuckerberg to testify. chairman chuck grassley did as well in a data privacy hearing scheduled for april 10th. any inquiry will involve cambridge analytica which according to the "washington post" allowed dozens of foreign nationals to work in u.s. election campaign in protection of law. an allegation that it kept logs of phone calls and text of android users using facebook messenger without their explicit consent. the company claims by signing up users had it in. william la jeunesse, fox fox fox news. cheryl: breaking news right now on facebook. mark zuckerberg is offering

we will toss to elon in washington, d.c., regarding facebook and the ftc. >> yes the ftc confirming iten nonpublic investigation into facebook's privacy practices. the ftc issued a statement from tom paul the acting director of the agency's bureau of consumer protection he said that the ftc is committed to using all of its tools to protect the privacy of consumers and foremost among those tools, is enforcement action against companies that fail to honor their privacy promises and companies that engage in unfair acts that cause substantial injury to consumers and violate the ftc guidelines again, the ftc confirming it does have an open, nonpublic investigation into facebook's privacy practices. this coming as facebook executives have been on an apology tour to consumers. we'll see where this investigation leadsand we will bring you more as we have it back over to you >> elon, thank you, in washington, d.c. shares of facebook we are at the lows of the session down 5.5%. brian, i'll toss it back to you, your reaction to the reporting just laid out? >> yeah. i don't think most consumers ar

thursday afternoon >> much more cramer's mad dash is coming up futures are higher only 40 points >> and ftc took facebook down. >> "squawk on the street" back in a couple of minutes

the ftc has opened an investigation. remember, in 2011, facebook settled with the ftc about data privacy concerns. well, the fact that cambridge analytica apparently scraped data from 50 million people has the ftc upset. you have the uk parliament inviting mark zuckerberg, the ceo and billionaires to testify, if you will, in front of parliament in the uk. has hae declined that invitatio the way. congress would like zuckerberg to appear. the company stock is down 12%. when you've got a market cap, that's about a $50 billion loss in a matter of a couple of trading days for facebook. the ides of march, whatever you want to call them, it's been a march to forget for facebook. i have a feeling, maybe i'm 109% right this time, that facebook story not going away any time soon. you can like that. >> okay, the pressient brian sullivan, thank you. >>> ceo zuckerberg declining to talk to british lawmakers but we are hearing from the cam britain analytical whistleblower. what he said this morning. >>> plus, the trump administration

this is actually facebook's second strike at that with the ftc. so in 2011, they had an agreement about privacy, about use of data that facebook agreed to. so i think one. questions that facebook is now going to have to answer is, did they follow the guidelines they said they would in 2011. ashley: right. >> if it is found not, start tacking on millions of dollars in fees, without talking about potential regulation. it is literally going to cost them. i think that will be one of the bigger questions. i know with the android, so-called scraping, i spoke with somebody at facebook in legal thing, oh, users did have the opt out. always the own us on the user, we remind yourself if you're not paying for the product, you are the product. ashley: right. >> there is a bit of a buyer beware which i think the facebook legal side is going to try its best to argue. >> right. >> long story short, this honestly opens the doors as you said, invited to dc, are now mark zuckerberg, jack dorsey for twitter and larry page for google. so i think, what are these compa

this isn't the first time the ftc has looked into facebook.1, they did sign a decree promising stronger privacy practices. so the ftc are >>> a california uber driver recovering from a classic case of the mondays after getting his car stuck on a set of stairs. he decided to take a set of stairs instead of the elevator. apparently he's saying it wasn't his fault. >> exactly. very important business story here. the uber driver apparently was trying to leave a grocery store and instead of taking the usual way out, he used the stairs instead. there are a lot of photos of this car online. nobody got injured. he did say it was the navigation system's fault and he had nothing to do with it. he was following the gps and if you like such stories there a's aly day who drove a car into a lake up in michigan a couple of months ago. >> you can't rely on technology at that point. you're going to have to look up from your phone and see that there's a lake in front of you or some stairs. >> listen, if it says the shortest way between one street and the other

things forery high security systems to be able to realize or be able to forge to bring to the ftc. announcer: watch the communicators tonight on c-span two. announcer: washington journal continues. host: this morning we have talked about the potential for a looming a trade war, we have talk about efforts to pass new gun-control laws. the implication of the new tax any ofu can talk about those issues or any other public policy issues on open phones. (202) 748-8000 for democrats. (202) 748-8001 four republicans. (202) 748-8002 for independents. we will be open phones until 10:00. democrat, north carolina. good morning. caller: good morning to you, sir. i believe it is kind of ironic that you do this every week. something ands the whole media flocks around it, but we all know this is not goingtariff to happen. he signed daca, he is going to do this, he is going to stop the guns. and of the week progresses, he does nothing. the people in the industrial belt, they get behind this guy like he is really going to do something for them. he is out for one person and one person only. himself.

what isalso clear is still troubling to me, that the ftc is still not the expert agency. it still is not the agency that has any background of when it comes to a common carrier or net neutrality regulation. the agency still does not answer or come into play unless a harm is done and unless you can prove unfair or deceptive practices. .hose are very high furloughs communicators, monday night at 8:00 eastern on c-span two. >> behind me and the shawnee milling company. it is one of two locally owned businesses that have been open -- that have been in operation for over 100 years. come with us as we visit these two companies and learn about their history and why their to shawnee remains strong. >> it has very interesting history. 1891, south of the town here, across the river a man came and built the wooden mill. he was there until 1895, and then the town want

phil, ftc what does this mean this little addition to the chapter?well, data harvesting and fate book and other companies that do it have become a really core part of how the world works now. it's about time we looked into it and decided how we wanted it to function. glad there's investigations going on >> there's that and the pressure to appear before congress. there's warner over the weekend saying the companies have been less than forthcoming. does this add up to something? can we predict what might become of this? >> i think it's a little early to say that, but, you know, we are seeing the beginnings of the apology tour here. who knows how long that will continue with cambridge analytica and that scandal but what other scandals are there and what other companies will be a part of this like we're seeing the google and android news coming out i think we're at the beginning of this thing. >> phil, this idea that data is kind of the life blood of the future of silicon valley when it comes to either artificial intelligence or when it just comes to big

the ftc is looking into whether facebook potentially has broken the consent decree.ink regulators will get involved in the united kingdom as well? a very yes, this is interesting issue. in european law, there are restrictions based on people's political views and opinions. with that legislation didn't necessarily consider was the fact that people may harvest huge amounts of consumer data, data that people consented to give as part of surveys on their opinions or consumer habits. but they never consented for that data to be used in a political campaign or held by a company that is not a registered political party. this is a big area of concern and something the u.k. information commission is looking at. caroline: do think any changes will could -- will be put in place internally by facebook? what changes would you like to see put in place to put your mind to rest? damian: our concern is the way they manage and handle data. to understand how easy it is for developers and others to acquire data off of the facebook site by engagement with facebook users and how facebook

in 2011 they signed a consent decree with the ftc, not to allow unauthorized use of profile. mix's admission something jes face book may have violated the agreement. an early investor of facebook is a critic of the company. >> there is a giant problem for facebook and democracy in the united states. >> sam lester with electronic privacy information center agreetz. >> users had no idea that cambridge analytica was accessing data clear violation of the 20911 consent order. >> could cost them 40,000 for every offense all. that could total $2 trillion in fines. zuckerberg's silence is disappointing. >> you don't get to make a billion dollars or tens of billions of dollars without being responsible for the consequences of your actions. >> facebook spokesperson said today the entire company its outrage they'd were deceived by cambridge an liticca. lawmakers in congress and britain's parliament are holding facebook responsible and they want to hear directly from mark zuckerberg. >> john blackstone. thank you. >>> there is much more ahead. >>> birth control pills are for women, right

but what is also clear is why still troubling to me, that the ftc is still not the expert agency.still is that the agency that has any background of when it comes to a common carrier or net neutrality regulation. the fcc's to the agency that does not answer or come into play and less harm is done and unless you can prove unfair or deceptive practices. those are very high hurdles for mignon clyburn security systems to be able to realize or be able to bring to the ftc. >> watch "the communicators" tonight at eight eastern on c-span2. >> c-span, where history unfolds daily. in 1979, c-span was created as a public service by america's cable-television companies and today we continue to bring you unfiltered coverage of congress, the white house, the supreme court, and public policy events in washington, d.c., and around the country. c-span is brought to you by your cable or satellite provider. >> we are live at the heritage foundation in washington for a conversation on legislation

ftc will investigate facebook on the grounds of the consent, and i asked mr.uckerberg last week to appear before the house judiciary committee. we have a regulatory authority over the ftc, concerns and jurisdiction over the issues of , the issues of freedom of speech, and the issues of due process. users those impact without their knowledge. be factfinders, to write the right kind of regulations to ensure the business element of facebook continues. we have no desire to undermine the business element or the consumers, but we have a constitutional responsibility to protect the american people from invasion of privacy without their knowledge and compensation. we still have not heard from mr. zuckerberg on your invitation to appear in congress. do you think he should be subpoena if he refuses? if he have thee: knowledge we needed to hear, he would appear. i would say to him, you have the knowledge because you set the policy. the president of the united states sets the policy for the nation. those in your company implement the policy. you set the policy as you thin

now the ftc is investigating its privacy practices. they announced that today. than 2.5%. facebook also facing outrage from the public after a revelation it has been logging text and phone call histories for some android users through what facebook calls an opt-in feature. joining us now is the journalist who first reported this about the android data collecting. shaean gallagher, the informatin reporter good to have you here. >> good afternoon. >> tell us exactly what you discovered >> we found in archives of facebook data that users had collected and downloaded from facebook that there were reports of their phone calls and of their text messages dating from 2015 through around the end of last year. >> so that's a very specific type of phone, type of platform for a very specific time period, correct? >> right soy we believe that basically what happened is that on the android platform, which is the phones that this data was collected from, the permissions that facebook requested from the phone allowed them not only to collect contact information, which is part o

this is the second at-bat for mark zuckerberg with the ftc. one of the ftc's job is to protect our privacy. the first meeting was back in 2011. one of the key questions that mark zuckerberg will have to field is did you follow the directions that we talked about that you signed off on back in 2011 as it pertains to cambridge analytica or any other kind of relationship with our consumer data. i want to play for you, shep, this sound bite from senator mark warner and shows you the perception of some in government against big tech. here's his comment. >> i think the whole industry has been reluctant to accept the fact that we've seen the dark underbelly of social media, how can it be manipulated. we're still dealing right now with fake posts and fake accounts. think about the next generation of technology. >> okay. so the dark underbelly not great language for big tech. i want to mention in addition the mark zuckerberg, twitter and google have been invited which means they have to go and protecting and handling our data. back to you. >> shepard:

my sources telling me that facebook is going to face a probe by ftc. the big question is, did they or did they not violate a 2011 privacy consent? which basically means they're not supposed to just go in, farm all of our data, all of our material and sell it. i want to underline though because we also did see that the deputy privacy officer at facebook came out with a statement, i feel like i should read this, this is the official line of defense, coming from facebook saying we respected the privacy settings that people had in place. so according to facebook, this is more or less a big misunderstanding, exactly about how this information was taken from the company. i think the larger question and why we're seeing the selloff, jason may agree with me on this, facebook seems to have built a too big for it to control. this machine is out of hand. cheryl: jason, has facebook gotten too far beyond their initial mantra, what the company was created for which was a place for session interaction? go there interact, have all your information sold to companies,

those are very high hurdles to beable to realize or to looked to afford to bring to the ftc. >> watch the communicators on c-span2. >> this weekend, american history tv is joining our vine broadband partners to showcase the history of shawnee oklahoma. the citiesre about on our current tour, visit c-span.org/cities tour. we continue with our look at the history of shawnee. >> i like to describe it as a match only god can make in heaven. the original monks arrived in new orleans in 1872, thinking

those are very high hurdles for security systems to be able to realize or be able to bring to the ftc. announcer: watch "the communicators" tonight at 8:00 p.m. eastern on c-span two. -- on c-span2. inouncer: next, a debate that eight teams district -- at the house race in pennsylvania congressional district between republican rick saccone and democrat mr. lamb. this is about one hour. announcer: a local race on the national stage. >> a special house election drawing national attention. >> fascinating race. announcer: a special election for the 18th congressional district. >> i"m running for congress because i want to help the people of the 18th district. >> i just feel like i can go down there and be an asset. announcer: republican state representative rick saccone. democrat and former federal prosecutor conor lamb. two military veterans spending time and effort to win your vote. >> i hope the voters of the 18th district will look at my record and look at my family, my background. >> i am running a campaign based on western pennsylvania values to solve western pennsylvania problems.

if found guilty, the ftc has the power to find facebook -- fine facebook thousands of dollars a day peron. >> in 2011 they said the ftc had to give users the opportunity to give express informed consent if they were going to share their information with third parties. the fcc came out with a statement not commenting or confirming whether they are investigating, but they said they do take data privacy issues very seriously. ♪ >> world financial leaders just wrapped up their annual summit in buenos aires. steve mnuchin addressed policy makers last hour saying the u.s. is not afraid of a trade war. tell us more about what he said and how much pushback from attendees? >> we know there was a lot of pushback because the attendees all told us that they did not sign on to the administration's trade agenda. the idea that turning inward would hurt the global economy. in his closing press conference, the treasury secretary said the u.s. would go it alone because it is a trading nation that should be treated fairly. the administration is going to ensure that. that was the message they heard last ye

tsif the ftc pullsunches, you will have to weigh this in the court of public opinion. how facebook fairs there will depend on if other companies get sucked into this or not. if it's just facebooob they have a m. if the issue becomes the silicon valley business model, i think facebook has a little breathing room and we will have to have a real con jane: is there anything happening on twitter? >> i think iis happening on all of the platforms. as soon as the american public wakes up and has a shift of mind, we can grapple with this with policy that makes p more comfortable. jane: thank you for joining me. quickly, some of the other days news. the former boss of lry nassar, the disgraced former doctor at thest center of the usa gyms sexual abuse scandal has himself been charged with criminal misconduct. prosecutors say william strampel used his office to proposition and assault female students. his lawyer has refused to comment. benjin netanyahu has tweeted that he is on his way home after being briefly hospitalized with fever and cough. his spokesperson says he had not be

fcc should be doing if they are competition issues or consumer protection issues the expert is the ftc we need to give them more teeth to perform that task and that is what we should be doing. >> is this a campaign issue? >> it never seems to level to the rise of campaign a lot of people believe they can go raise money and run on net neutrality in 2018. we saw a fiercely contested special election in pennsylvania i don't think the word net neutrality were raised once i think that is the reality people live in there hasn't been an issue and any elections that have occurred in 17 or 18. >> what about the separate issue of big tech has some are getting too influential? but i think we have antitrust laws to influence but the perception out there is we have taken such a hands-off approach to the internet there are no basic rights i think the fcc's actions over the last three years prior to the current fcc fuel that so with facebook and google we will leave them alone over here i think i would make the case to my colleagues basic consumer protections were to alleviate a lot of concerns peopl

>> there's no doubt the ftc will get these issues. we need to realize the market is reshaping itself. in the participation between the virtual space in the way the markets are changing there is indeed a reshaping. i was listening this morning on the report about amazon becoming a bank and setting up checking accounts. were going full circle back to the days of the general store. but it's in the virtual space instead of the physical space. >> you represent nashville area of potential music copyright legislation coming out, what are your thoughts? >> we've worked hard to make sure that they have been protected and that are creators have the ability to be compensated for the works that they do create. this is something that has been a process and i have appreciated the chairman and doug collins have helped shepherd this across judiciary committee and has been international several times. we sat down with music publishers and record producers. the entire ecosystem to look at the compensation and the effects of piracy that are on this issu

great thaty area, so the ftc is launching a prop to see whether or not this is a violation of the 2011onsent agreement act. if there is some violation it could equal a massive fine. it could be a stunningly large fine and worst-case scenario for facebook could be a big fine. that is also bringing the government into the picture, the u.s. government up unto now had regulated technology very little. a double whammy with the european market as well, and if we look at this chart, we are looking at g #btv 3786. it basically has a higher high and lower lobe than last month and typically the speaks to white uncertainty volatility for buyers and sellers suggest you could see the more ahead. we could see a equal and opposite reaction down towards between 130 and 140. pretty amazing. caroline: and you bring up some of the technical indicators. let's look at the relative strength indicator -- facebook's talk is below the 50 day moving average. the 100 day and 20 day moving average, and if you look at the lower half of your screen as well, this shows where we start to get close to the over sold in

the ftc and facebook announced a settlement in 2011.t you think the ftc is most interested in looking at now with regard to facebook as you see it. >> at a high level, the commission's going to be looking at whether or not its effort in 2011 and 2012 to set a testimone for privacy in the information services sector is working. there's a fairly powerful clause in that settlement that says that facebook will establish a system designed to ensure that data protections built into its commitments are fulfilled, that third parties respect those commitments, and that the information that its users provide is held confidential. in a fundamental way, this is a test of whether or not that approach is working with some fairly powerful sanctions built into the background. >> maria: they haven't done any of that, right? when you see what's been taking place, all these third party companies can come in and get access to your data and the way that things move so fast, can this company be regulated or is data going in and going out too hard to track? >