ATLANTA — A federal investigation into Facebook's privacy practices could cost the social media giant as much as $5 billion in fines.
The company made the announcement to investors saying it was setting aside $3 billion for now.
Last year the Federal Trade Commission (FTC) said it was looking into reports that Cambridge Analytica, a British consulting firm, improperly accessed data for tens of millions of Facebook users.
That was seven years after the site promised to improve privacy practices related to another dispute with the FTC.
Now, the federal agency is reportedly looking at if or how it can hold Facebook founder and CEO Mark Zuckerberg personally responsible for mishandling user information.
The FTC could put injunctions on the company to alter how it does business, like restricting Facebook's ability to use data for ad-targeting.
Facebook hasn’t said if it’s close to reaching a settlement with the FTC, but Zuckerberg has said his company will work to shift to private encrypted messaging, with less focus on the public posts and news feeds many of us use.
Shares for the company rose about eight percent after the news of the potential fine came out, and some say that shows it's not enough of a punishment, with one congressman calling it a slap on the wrist.