The first quarter of 2018, saw Facebook make £500,000 in revenue every five and a half minutes. March, 2018 saw the breaking of ‘The Cambridge Analytica Scandal’, which lead to it coming under serious scrutiny for breaches of ‘The Data Protection Act, 1998’. Facebook failed to safeguard user’s information and to be transparent about how that data was harvested by others. This resulted in them receiving the maximum fine of £500,000 being placed on them by The Information Commissioners Office.
This though is not about the fines, its is about the damage that this has on Facebook's image and reputation. Widespread coverage of the Cambridge Analytica Scandal, has led to the perception that Facebook is ‘invasive and untrustworthy’. Nearly a third of people who have reduced their use of social media state that they have concerns about their personal data. The rise of fake news and how its is spread using social media platforms, specifically Facebook has resulted in a lack of trust in the information people view on the site.
Elizabeth Denham The Information Commissioner has issued a ‘a strong statement of intent against the tech giants, specifically those who have the capacity to abuse people’s data’. The initial interim report published by the Information Commissioner’s Office investigates the Brexit Referendum, and the use of data in politics. Stating that:
‘Data is power, and it is power concentrated in huge companies…regulators need to have individuals’ backs. We need to protect people because how else can individuals act against some of these large companies? It is why we still rely on journalists, on civil society on whistle-blowers bringing evidence forward but as a regulator we need to act upon it’.
As a result Facebook has been airing a tv ad pledging to address fake news and data misuse and to return the social media network to its primary function of connecting people. ‘We are taking a broader view of our responsibilities, and we hope this campaign will show that we take that responsibility seriously to improve Facebook for everyone’ Facebook said in a statement. (Wall Street Journal, 2018).
Despite this crisis, and its effect on its reputation, the negative impact could be short-term, although there is a definitive need for it to rebuild peoples trust. A third of people who have cut down on their social media usage have done so due to concerns in regards to misuse of personal data. Facebook is identified as being the most addictive social media platform analysed at 27%, which is a large determining factor in retaining users. The strength of its brand and its large user base are likely to see it continue to be the most popular network’ (Mintel Academic, 2018).
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