Privacy Groups File FTC Complaint Over Whatsapp Facebook Privacy 'Bait And Switch'

from the privacy-schmivacy dept

When popular messaging app Whatsapp was acquired by Facebook in 2014 for $19 billion, the company responded to the obvious privacy implications with a blog post promising to "set the record straight" about the acquisition, while debunking all of the "inaccurate and careless information" being circulated online. In it, co-founder Jan Koum promised that the app, which has tried to build a reputation on respecting user privacy, would keep privacy at the heart of its operations under Facebook. Privacy was, Koum promised, simply "coded into our DNA":
"Respect for your privacy is coded into our DNA, and we built WhatsApp around the goal of knowing as little about you as possible: You don't have to give us your name and we don't ask for your email address. We don’t know your birthday. We don’t know your home address. We don’t know where you work. We don’t know your likes, what you search for on the internet or collect your GPS location. None of that data has ever been collected and stored by WhatsApp, and we really have no plans to change that."
That was then, this is now.

Last week, the company announced in a new blog post that it would soon begin sharing Whatsapp user phone numbers and various analytics data with Facebook. While this is obviously about money, the company's blog post repeatedly insisted the move was about helping the end user avoid spam and make stronger, deeper connections with friends:
"But by coordinating more with Facebook, we'll be able to do things like track basic metrics about how often people use our services and better fight spam on WhatsApp. And by connecting your phone number with Facebook's systems, Facebook can offer better friend suggestions and show you more relevant ads if you have an account with them. For example, you might see an ad from a company you already work with, rather than one from someone you've never heard of."
Gosh, thanks. The Electronic Privacy Information Center was quick to claim that Facebook and Whatsapp may have violated federal law with the move. The group notes it filed an FTC complaint back in 2014 (pdf) expressing concern that failure to obtain users' opt-in consent before modifying privacy practices was an "unfair and deceptive trade practice" violating Facebook’s FTC Consent Order (pdf). In a subsequent letter from the FTC to Whatsapp (pdf), the FTC warned the two companies that they must honor their privacy promises to WhatsApp users.

As expected, EPIC and the Center for Digital Democracy have filed a formal complaint with the FTC (pdf), accusing Facebook of violating Section 5 of the Federal Trade Commission Act. In public statements, both organizations accuse Facebook and Whatsapp of a "bait and switch" on previous promises that user information would not be used for marketing across the Facebook social media empire:
"The FTC has an obligation to protect WhatsApp users. Their personal information should not be incorporated into Facebook’s sophisticated data driven marketing business,” said Katharina Kopp, Ph.D., and CDD’s Director of Policy. “Data that was collected under clear rules should not be used in violation of the privacy promises that WhatsApp made. That is a significant change that requires an opt-in, according to the terms the FTC set out. It’s not complicated. If WhatsApp wants to transfer user data to Facebook, it has to obtain the user’s affirmative consent."
Whatsapp users looking to opt out of data collection within the 30 day warning window simply have to uncheck the "share my account info" box before accepting WhatsApp's newly updated terms and conditions. Users who accidentally approved the new TOS still have several weeks to uncheck this same box by clicking on "settings," "account," then unchecking the same "share my account info" box. Granted the Whatsapp opt out instructions note that even after doing this you're still not entirely opted out of having this data shared with the "Facebook family of companies":
"The Facebook family of companies will still receive and use this information for other purposes such as improving infrastructure and delivery systems, understanding how our services or theirs are used, securing systems, and fighting spam, abuse, or infringement activities."
It seems unlikely that the EPIC and CDD complaints gain much traction. Fortunately, unlike sectors like telecom, users here aren't stuck waiting on regulators since they already have the choice of alternative, open source (and frankly already more secure) encrypted messaging options.
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Filed Under: encryption, messaging, privacy
Companies: facebook, whatsapp


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  • icon
    Ninja (profile), 30 Aug 2016 @ 12:23pm

    Nobody could see it coming, no? /sarc

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 Aug 2016 @ 12:29pm

    Unfortunately the damage is already done. Whatsapp can keep bragging about its Snowden approved crypto and tired consumers will put up with more and more antifeatures.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 Aug 2016 @ 12:36pm

    This is real reporting!

    Privacy was, Koum promised, simply "coded into our DNA": (...snipped for brevity...) That was then, this is now.

    I can only imagine if lamestream media called out our politicians on failed promises, double speak and flip flopping that we might have better candidates. What annoys me the most is when the media reports what somebody said and doesn't call them on their BS right then and there.

    link to this | view in chronology ]

    • identicon
      Anonymous Coward, 30 Aug 2016 @ 4:10pm

      Re: This is real reporting!

      "What annoys me the most is when the media reports what somebody said and doesn't call them on their BS right then and there."

      Much (most?) of what you read in the "media" is now "written" by robots. The financial press is now an algorithm that converts press releases into "editorial" material.

      Just where in this process can the media "call them on their BS"?

      Do you have a "calling on BS" algorithm?

      link to this | view in chronology ]

      • identicon
        bob, 31 Aug 2016 @ 9:12am

        Re: Re: This is real reporting!

        Calling BS,
        on FB,
        in the TD,
        while FB,
        goes on a spending spree.

        :)

        link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 Aug 2016 @ 12:59pm

    totally predictable, Facebook behaving as usual

    This is far from the first time and will be far from the last time that these sorts of "but you promised ... " complaints emerge at Facebook.

    Time and again, Facebook has repeatedly proven that it has zero respect for privacy, zero intention of honoring prior agreements, and zero honor when it comes to behaving respectably or telling the truth. Facebook is one of the most disreputable, scheming, back-stabbing companies out there, and it's amazing that anyone still trusts them after all the scandals. Though ironically no one was more amazed than Facebook founder Mark Zuckerberg, as he once uttered in disbelief, "They trust me - dumb fucks."

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 Aug 2016 @ 1:13pm

    Nobody should be suprised by this

    Spammer Mark Zuckerberg has built his fortune on abuse and destruction of privacy -- and nobody has stopped him. So why should he change course? The feds do little if anything (and it's always too little too late) and the users are MUCH too stupid to leave.

    link to this | view in chronology ]

  • icon
    Padpaw (profile), 30 Aug 2016 @ 1:45pm

    This is why I have a fake profile solely for internet use.

    My paranoia comes in handy some times.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 Aug 2016 @ 2:01pm

    My ** below

    "the Whatsapp opt out instructions note that even after doing this you're still not entirely opted out of having this data shared with the "Facebook family of companies":

    "The Facebook family of companies will still receive and use this information for other purposes **such as** improving infrastructure and delivery systems, understanding how our services or theirs are used, securing systems, and fighting spam, abuse, or infringement activities.""


    From https://www.whatsapp.com/legal/

    "Deleting Your WhatsApp Account. You may delete your WhatsApp account at any time (including if you want to revoke your consent to our use of your information) using our in-app delete my account feature. When you delete your WhatsApp account, your undelivered messages are deleted from our servers as well as any of your **other information we no longer need to operate and provide our Services**. Be mindful that if you only delete our Services from your device without using our in-app delete my account feature, your information may be stored with us for a longer period. ..."

    Taken together and looked at in the right light (ie the way FB would look at it) the bolded texts seem to allow for FB to receive information on already or newly 'deleted' accounts. i.e. Since deletion of an account can result in retention of information "we need to operate ... blah-blah" and opting out also does not forbid information from being shared for whatever purposes they want, then I see no bar on sharing or retaining information on closed accounts.

    "There's no way out of here. Once you come in you're in for good"

    link to this | view in chronology ]

    • identicon
      J.R., 30 Aug 2016 @ 4:49pm

      Re:

      i.e., "you can check out ant time you like, but you can never leave"

      Which I why I've never checked into Facebook.

      link to this | view in chronology ]

  • identicon
    bob, 30 Aug 2016 @ 2:25pm

    the onion was correct!

    The onion predicted that facebook was really just a cover for government surveillance. Now they have all the private info and people thinking they are secured using their services.

    link to this | view in chronology ]

  • identicon
    Mark Wing, 30 Aug 2016 @ 6:30pm

    Someone used CRISPR to recode their DNA.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 Aug 2016 @ 9:12pm

    Respect for your privacy is coded into our DNA

    And just like in biological systems, when two beings reproduce their recessive genes can be overridden by a dominant trait of their partner.

    link to this | view in chronology ]

  • identicon
    Gallipoli, 30 Aug 2016 @ 9:22pm

    there is no hope

    as long as people are stupid enough to have fakebork, instantnoodle, failed link accounts there is no hope for humanity period, only if this is used as a database to have some sort of logans run execution of the worthless will it work out

    link to this | view in chronology ]

  • icon
    Eldakka (profile), 31 Aug 2016 @ 12:01am

    And what happens if I don't login Whatsapp for 6 weeks?

    Because I haven't logged in, does it mean I have accepted the sharing of the data?

    link to this | view in chronology ]

  • icon
    JBDragon (profile), 31 Aug 2016 @ 7:30am

    People should have dropped Whatsapp as soon as Facebook acquired them!!! Who didn't see this coming? In that sense you were informed in 2014 when Facebook acquired them in what was really going to happen at some point. It doesn't matter at that point what the Developers of Whatsapp say and wanted ass they sold the software and it's no longer theirs. They made a huge bundle of money selling it to Facebook, now you leave just as soon as you can and enjoy life. Facebook will screw it up. Privacy goes right out the Window. I expected nothing less.

    link to this | view in chronology ]

  • identicon
    Kronomex, 31 Aug 2016 @ 5:49pm

    DNA for Facebook simply means Does Not Apply when it comes to advertising, privacy and money.

    link to this | view in chronology ]


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