“Facebook Sets Aside $3 Billion to Cover Expected FTC Fine,” The Wall Street Journal, April 25, 2019. Reserve to cover potential fine from privacy violations.
You tell the FTC that you won’t share user data without consent. And then you share it anyway. Oopsie.
So, Information (user data) shared without consent (Compliance) in violation of agreement with the FTC (Governance/Compliance). One question: is this fine (one quarter’s profit) sufficient to penalize this behavior by Facebook and deter similar violations by others?
“Brothers Involved in Smollett Case Sue His Attorneys for Defamation,” The Wall Street Journal, April 24, 2019. Smollett’s lawyers accused of defaming the two Nigerian brothers in news interviews.
Generally, you can’t sue a lawyer for an accusation he or she makes in court. But what he or she says to the news cameras is fair game. And the lawyer is probably acting as the client’s agent in making those statements, so the client has exposure for the attorney’s acts. But, for a change, the lawyers are the deep pockets.
So, clearly information. And Compliance (with libel/slander laws). And Governance, through the legal process.
“Online Lender Prosper Settles Probe Over Misleading Investors,” The Wall Street Journal, April 20, 2019. Company provided the wrong data to is investors. For two years.
The error resulted in the company overstating its earnings. Why do these errors never go the other way?
You invest in something, and rely on the company providing accurate information to measure your investment. They overstate their results by not including certain deductions. Then the suit for fraud.
Where is the failure in governance? The company? You?
“In SEC vs. Elon Musk, a Question of When Tweets Matter,” The Wall Street Journal, April 18, 2019. Dispute over meaning of settlement agreement with SEC.
What does “reasonably could contain” material information mean? Mr. Musk tweeted allegedly misleading tweets, and entered into a settlement with the SEC.
Lawyers apparently agreed to this language. Does a dispute over meaning implicate Information Governance, and Compliance? Mr. Musk has continuing legal exposure for future tweets.
Confusion in language is not a good thing. Precision is. Who governs the words you use in legal agreements?
“Volkswagen Ex-CEO Faces Fresh Fraud Charges Over Emissions Scandal,” The Wall Street Journal, April 16, 2019. Prosecutors in Germany seek return of salary and bonuses, plus ten years.
The VW story has been going on for some time. They used a software to alter emission testing results and got caught. Billions (25+) of dollars later, prosecutors now try to recoup the salary paid to the CEO.
Should those being paid to provide governance have to forfeit their salaries if they provide “bad” governance after they learn of a problem?
While this is at its heart an Information story, where the company tried to fake information it was giving the government (and its customers), will it’s biggest impact be forcing Management to forfeit salary and bonus?
“Google Sued Over Abuse of Search Power, Opening Path for More Claims,” The Wall Street Journal, April 13, 2019. Google accused of favoring its proprietary price comparison tool over that of a competitor.
Are governments starting to rein in the tech giants? What does this tell us about the future?
Yes, this is information governance. The German court is being asked to say how Google can and cannot use the searching protocols on its platform to deliver results. The antitrust/competition laws are one of the controls on how Google uses information on its system. It’s also Compliance, as Google is being accused of illegally using its market power to reduce competition.
“Test-Taking Whiz in College Admissions Scandal Pleads Guilty,” The Wall Street Journal, April 13, 2019. Harvard grad would take SAT tests for others.
Apparently, someone can impersonate you and take “your” SAT test.
One suspects that the SAT folks are tightening the barn door. And schools may be kicking out some loose horses. Lots of different Information, Governance, and Compliance issues, at several different levels.
What information do you rely on when making decisions? How important is it to you that that information is accurate?