Social networking site Facebook Inc(NASDAQ:FB) has been accused of deceiving developers by not verifying the security of their applications for which it had been paid a lot of money running into several thousands of dollars.
Worse, it had assured users of its site and who frequently downloaded these applications that their security had been verified.
What Technical Charts Suggesting About FB. Get Free Trend Analysis
Developers had paid Facebook $95,000 for this facility and to register their applications under is verified apps scheme.
Last week Facebook had reached a settlement with the U.S. Federal Trade Commission for having ensured the privacy of its users and having made the information given to it by them, public without their knowledge or prior permission.
Facebook has had to submit itself to monitoring by the FTC for the next 20 years to ensure that it abides by the terms of the order, failing which it has to pay fine every time it violates the order.
The FTC investigation has also revealed the current deficiency on the part of the social networking site in that it took no steps to review the applications that are now no longer functional.
The Facebook had automatically given a green tick of approval to all the applications that had been registered under the scheme.
Facebook had said that it would subject the applications to a detailed review process and then give the badge to those apps.
"Contrary to the statements set forth in paragraph 46, before it awarded the Verified Apps badge, Facebook took no steps to verify either the security of a verified application's website or the security the application provided for the user information it collected, beyond such steps as it may have taken regarding any other Platform Application," the FTC said.
How Should Investors Play FB Safely, Find In Our Free Report
It "took no steps to verify either the security of a verified application's website or the security the application provided for the user information it collected, beyond such steps as it may have taken regarding any other platform application," the FTC added.