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Facebook plunges after FTC confirms it's investigating data practices

Sara Salinas

Shares of Facebook FB fell more than 5 percent Monday after the FTC confirmed it's investigating the company's data practices in the wake of the Cambridge Analytica breach.

"The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices," the agency said in a statement.

The FTC declined to confirm last week that it was investigating Facebook and whether it violated a consent decree the tech company signed with the agency in 2011.

The consent decree required that Facebook notify users and receive explicit permission before sharing personal data beyond their specified privacy settings.

This story is developing. Please check back for updates.

Here's the full statement from the FTC:

The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act. Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices.



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