Meta Challenges the FTC: Is its Authority over Data Privacy on the Line?
December 7, 2023
Privacy Plus+
Privacy, Technology and Perspective
This week, let’s highlight Meta’s lawsuit against the Federal Trade Commission (FTC), which marks a pivotal moment in regulatory oversight, leveraging the Supreme Court's inclination to reduce agency control, and directly challenging the FTC's in-house trials, alleging constitutional violations.
The Core of the Dispute: Constitutional Concerns and FTC's Dual Role
Meta’s challenge stems from the FTC's proposed amendments to Meta’s 2020 consent order, which included a $5 Billion penalty and significant restrictions on data monetization. Meta argues changes proposed by the FTC would cause irreparable harm to its business model. Additionally, it accuses the FTC of violating the Fifth Amendment's due process clause, arguing that the agency's role as both prosecutor and judge is unconstitutional. Additionally, Meta challenges the President's limited power to remove FTC commissioners, a point rooted in Article II of the Constitution.
On November 27, the U.S. District Court for the District of Columbia denied a motion filed by Meta for the court to take over the dispute with the FTC. However, Meta is expected to appeal that order. If Meta ultimately succeeds in its suit, it could force the FTC to shift from administrative to judicial procedures in federal courts, potentially impacting its effectiveness in consumer protection.
For more information, you can click on the following link:
https://www.reuters.com/legal/us-federal-judge-rules-against-meta-privacy-fight-with-ftc-2023-11-27/
The Broader Context: Supreme Court and Regulatory Power
The Supreme Court's review of SEC v. Jarkesy is a critical factor, as it may set a precedent impacting the FTC. A ruling against the SEC's administrative enforcement powers could weaken the FTC's authority over data privacy, aligning with Meta's challenge. For more information on Jarkesy, and its recent oral arguments, which focused on the right to trial by jury, you may click on the following link to the SCOTUSblog Coverage:
https://www.scotusblog.com/case-files/cases/securities-and-exchange-commission-v-jarkesy/
Our Thoughts: A Landmark Legal Confrontation
Meta's lawsuit is more than a regulatory dispute; it represents a significant challenge to the established power and structure of federal regulatory agencies, reflecting a broader legal debate on government oversight in the digital age.
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Hosch & Morris, PLLC is a boutique law firm dedicated to data privacy and protection, cybersecurity, the Internet, and technology. Open the Future℠.