Facebook is reportedly close to finalizing a deal with the Federal Trade Commission regarding its privacy policies.
According to the Wall Street Journal, the deal would require Facebook to get a user's consent if the site "makes material retroactive changes." The social-networking site would also have to undergo independent privacy audits for 20 years.
A Facebook spokesman said the company had no comment.
The issue dates back to 2009 when Facebook rolled out changes intended to provide users with more control over access to profile content. But that came as Facebook moved towards a more open format, expanding beyone the confines of Facebook.com. As a result, users were confused as to what data on their profiles were public and private.
The Electronic Privacy Information Center (EPIC) and nearly a dozen other privacy and consumer groups quickly filed a complaint. In January 2010, David Vladeck, director of the FTC's Bureau of Consumer Protection, said in a letter to EPIC that the changes raised "a number of concerns about Facebook's information sharing practices."
The complaint also "raises issues of particular interest for us at this time," Vladeck wrote.
That "interest," however, did not immediately translate into a formal inquiry. "Any commission investigation is non-public until the commission decides to issue a formal complaint or close the investigation," Vladeck wrote. "As a result, we can neither confirm nor deny that we are conducting an investigation of the issues raised by your complaint."
An investigation apparently ensued; the Journal said the FTC's proposed settlement must still be approved by agency commissioners.
In May 2010, Facebook rolled out an overhaul of its privacy settings, which largely satisifed consumer groups and privacy advocates, though issues remain. In recent months, interest groups and members of Congress have asked the FTC to investigate Facebook features like tracking cookies and facial-recognition technology.
In October, the FTC finalized a settlement with Google over its Buzz social-networking feature, which also required the search giant to implement privacy safeguards and submit to regular audits.