Is Facebook is Losing Face?
Facebook has been all over the news in recent months though the reasons have not necessarily been positive. In particular, in recent months, when it comes to obeying laws protecting personal information, Americans have less trust in Facebook than other internet-based technology companies.
As you might already be aware, Facebook has been engulfed in a storm of criticism after it emerged that political consultancy Cambridge Analytica harvested and exploited the personal information of 50 million of its users. The firm is trying to restore its tarnished image with CEO Mark Zuckerberg recently issuing a public apology. However, judging by the findings of this poll, the social network certainly has serious work to do in order to restore confidence in its user base.
According to a recent Reuters/Ipsos poll, and noted by the chart from Statista below, consumers are truly losing faith in the company. 51 percent of consumers believe that Facebook is not trustworthy when keeping in-line with privacy laws, while just 24 percent distrust Amazon and 29 percent distrust Google. Additionally, 66 percent of respondents said they trust Amazon, 62 percent trust Google and 60 percent trust Microsoft. Apple and Yahoo! were also ahead of Facebook in the trust stakes.
However, the evaporation of trust among its users wasn't the only headache for Facebook in recent weeks.The U.S. Federal Trade Commission (FTC) also said it is investigating the firm to determine if it had "failed" to protect the privacy of its users. According to former FTC officials, the social network could be penalized severely if it is found to have violated or failed to comply with the consent decree it agreed in 2011. Fines could amount to $40,000 per violation and theoretically, this could all add up to $2 trillion.
This is not to say that Facebook is ruined as a stock -- from here on out, it really depends on the company how they choose to address these issues and truly ensure that they won't happen again. Only then will Facebook be considered one of the more vibrant technology stocks for the future.