Capitol - Your Illinois News Radar » Frerichs wants Zuckerberg out at Facebook
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Frerichs wants Zuckerberg out at Facebook

Monday, Apr 16, 2018

* USA Today

Mark Zuckerberg’s tight grip on Facebook is under growing scrutiny as investors call for the giant social network to name an independent chairman. […]

“In essence Mr. Zuckerberg is not accountable to anyone. Not the board, nor the shareholders,” Michael W. Frerichs, the state treasurer of Illinois, who oversees investments including college savings for citizens of the state, told the Financial Times. “Right now, Mr. Zuckerberg is his own boss and it’s clearly not working.”

Frerichs is supporting a proposal from New York City comptroller Scott Stringer, who oversees his city’s pension funds which have a $1 billion stake in Facebook. Stringer has called on the Silicon Valley company to name an independent chairman and three new independent directors with “specific expertise in data and ethics.”

“They have not comported themselves in a way that I think makes people feel good about Facebook and secure about their own data,” Stringer said on CNBC. “And that’s going to hurt the brand.”

* Meanwhile, if you’ve been wondering about what’s behind at least part of the biometric bill that proponents say will give the state law a much-needed update and opponents say will “gut” the law, look no further than this lawsuit

U.S. District Judge James Donato’s decision to let the class-action case proceed means that Facebook is still potentially on the hook for fines under a unique Illinois law of $1,000 to $5,000 each time a person’s image is used without permission. A court victory for consumers could lead to new restrictions on Facebook’s use of biometrics in the U.S., similar to those in Europe and Canada.

“When an online service simply disregards the Illinois procedures, as Facebook is alleged to have done, the right of the individual to maintain her biometric privacy vanishes into thin air,” Donato wrote in [February’s] ruling. “The precise harm the Illinois legislature sought to prevent is then realized.” […]

The Illinois residents who sued under the Biometric Information Privacy Act said the 2008 state law gives them a “property interest” in the algorithms that constitute their digital identities — in other words, gives them grounds to accuse Facebook of real harm.

Facebook, which got the case moved to San Francisco from Illinois, argued the users hadn’t suffered a concrete injury such as physical harm, loss of money or property; or a denial of their right to free speech or religion.

Donato concluded that the alleged violation of the user-consent requirement in the Illinois law goes to “the very privacy rights the Illinois legislature sought to protect.”

Needless to say, $5,000 per violation could add up to a truly gargantuan payout by Facebook.

* Related…

* Illinois Biometric Privacy Law—and Effort to Carve Out Exceptions—Gets Moment in Spotlight at Facebook Hearing

* Illinois’ Cook County Sues Facebook and Cambridge Analytica for Alleged Fraud

- Posted by Rich Miller        

  1. - truth - Monday, Apr 16, 18 @ 11:40 am:

    Better watch out Zuckerberg, the Illinois State Treasurer has it out for you.

  2. - walker - Monday, Apr 16, 18 @ 11:46 am:

    And I’d like no snow in April.

  3. - City Zen - Monday, Apr 16, 18 @ 11:49 am:

    You can show support for our state treasurer on any one of his multiple Facebook pages.

  4. - Phenomynous - Monday, Apr 16, 18 @ 12:14 pm:

    “I want my money back. And I want angels to give it to me. And pixies to count it out, and a gnome or a hobbit or an elf to sleep at the foot of my bed, and have - I just want them all over my backyard. But no matter what happens with any of that, I DO want my money back.”

  5. - Just Me - Monday, Apr 16, 18 @ 12:28 pm:

    Before our State Treasurer starts trying to run private companies, he should help Illinois get its act together first.

  6. - Driveby - Monday, Apr 16, 18 @ 12:39 pm:

    The Facebook stock on which Frerichs is playing activist investor aren’t even the state’s! They’re in 529 college savings accounts. Only those account holder should be deciding if they want to be social justice warriors.

  7. - cdog - Monday, Apr 16, 18 @ 12:46 pm:

    Of course I am not a lawyer, but I find it notable that a complaint filed which cites Illinois law, by Illinois residents, was moved to the Northern CA District with an Obama appointed judge.

    How’s that work? So a plaintiff wanting to challenge Silicon Valley’s creepy version of ethics has to fight them on their home turf?

    The little guy just hardly stands a chance as this whole digital-age keeps evolving.

  8. - Sue - Monday, Apr 16, 18 @ 1:08 pm:

    This would be funny if it weren’t true that Illinois has been an awful manager of its own affairs. I would rather have someone with Zuck’s Acumen overseeing our affairs rather then a guy like our treasurer

  9. - Anonymous - Monday, Apr 16, 18 @ 1:44 pm:

    ==How’s that work? So a plaintiff wanting to challenge Silicon Valley’s creepy version of ethics has to fight them on their home turf?==

    Federal law regarding venue requires many types of lawsuits be heard where the defendant “resides”.

  10. - Radio Flyer - Monday, Apr 16, 18 @ 2:53 pm:

    $1000 to $5000 per person. That would be a real boost to Illinois’ economy. Better than a tax cut.

  11. - Rich Miller - Monday, Apr 16, 18 @ 2:59 pm:

    ===per person===

    Per violation. Big difference. The exposure could be huge.

  12. - Radio Flyer - Monday, Apr 16, 18 @ 3:21 pm:

    Yikes. Good idea to limit exposure to Facebook stock, then.

Sorry, comments for this post are now closed.

* *** LIVE *** Gubernatorial debate coverage
* Ives doesn't believe Rauner can win, won't rule out another gubernatorial bid
* Answer the question, please
* *** UPDATED x1 *** Long changes his story again... and again... and again
* Question of the day
* Outside money starts flowing
* IDES does a good job spinning job numbers
* Two more ads from Pritzker
* We're number one! And second. And fourth.
* Report: Edgar "coaching" Pritzker
* Mendoza releases new report on the damage done during and since the impasse
* SUBSCRIBERS ONLY - Supplement to today's edition
* Pritzker's Downstate response ad: "Lie. Lie. Lie."
* Mendoza bobs and weaves when asked about running for mayor
* ALPLM won't display Lincoln hat and curator ousted
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* On eve of campaign kick-off, Preckwinkle admits she fired her chief of staff for "inappropriate behavior"
* Yesterday's stories

Visit our advertisers...






Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0

Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller