It seems like a distant memory, but just four years ago MySpace was king of the social networking hill. Born from the efforts of a few select eUniverse employees (eUniverse later became Intermix Media), MySpace was once competing with the likes of Google for unique visitors. Two years after its launch, News Corp bought MySpace for $580 million.
Six years later the website was sold to Specific Media and Justin Timberlake for less than a tenth of what News Corp paid. A year into their tenure MySpace completed its meteoric fall from grace, as the social networking site was forced to settle with the Federal Trade Commission (FTC) after it was found that there had been a widespread misuse of members’ personal information.
Myspace agreed to 20 years of US government oversight of privacy, just like Facebook did in 2011 and Google did in 2010. On May 8, 2012 the Federal Trade Commission (FTC) released a statement about its settlement with Myspace dislosing the following mispresentations which were violations of federal privacy laws
On May 8, 2012, the Federal Trade Commission (FTC) announced its settlement with social networking service Myspace on charges that it misrepresented its protection of users’ personal information in violation of federal law. Like many of its social media counterparts who were recently the target of FTC enforcement actions, Myspace is charged with espousing strict privacy measures and then failing to do as promised.
On May 8, the Federal Trade Commission agreed to settle allegations that Myspace misrepresented its data practices regarding the use and sharing of its users’ personally identifiable information, a deceptive act or practice in violation of Section 5 of the FTC Act. The primary data practice at issue was Myspace’s sharing of the unique identifier assigned to the profile of each Myspace user (called a “Friend ID”) with third-party advertisers