Court Questions FTC’s Authority to Change Court-Approved Settlements

Judges expressed skepticism over FTC’s bid to impose additional privacy measures on Meta, questioning the agency’s authority to modify previous agreements.

A pedestrian walks in front of the Meta logo at the Facebook headquarters in Menlo Park, Calif., on Oct. 28, 2021. Justin Sullivan/Getty Images

A panel of judges from the U.S. Court of Appeals for the District of Columbia Circuit appeared to voice skepticism this week regarding the Federal Trade Commission’s (FTC) authority to unilaterally modify a 2019 settlement agreement with Meta Platforms Inc., formerly known as Facebook.

The settlement, which required Meta to pay a record $5 billion fine and enhance its privacy protections, is now the focal point of a legal dispute over the FTC’s attempt to impose additional obligations on the tech giant.