Meta, the parent company of Facebook and Instagram has filed a lawsuit against the Federal Trade Commission in an effort to prevent the agency from reopening a 2020 privacy settlement with the business that would have prevented it from making money off of user data collected on those under the age of 18.

Meta Platforms Inc. said it is contesting “the structurally unconstitutional authority exercised by the FTC” in reopening the privacy agreement in a lawsuit that was submitted late on Wednesday to a federal court in Washington, D.C.

“Meta respectfully requests that this Court declare that certain fundamental aspects of the Commission’s structure violate the U.S. Constitution, and that these violations render unlawful the FTC Proceeding against the company,” the complaint states.

Meta and FTC Dispute

The conflict arises from a consent deal that Meta struck with the Federal Trade Commission (FTC) in 2020, which also required the social media behemoth to pay a record $5 billion fee for privacy abuses.

The FTC claimed in May of this year that Meta had not complied with the terms of the 2020 settlement in full and had made extensive revisions to the agreement, one of which was to prevent Meta from profiting from the data it gathers about minors. This would include information gathered via its virtual reality offerings.

The FTC’s Bureau of Consumer Protection head, Samuel Levine, stated at the time that “Facebook has repeatedly violated its privacy promises.” “Facebook needs to take responsibility for its mistakes as the company’s carelessness has put young users at risk.”

Meta filed a complaint after the conservative majority of the U.S. Supreme Court on Wednesday appeared receptive to contesting the Securities and Exchange Commission’s fraud enforcement practices in a case that would have significant ramifications for other regulatory organizations.

The majority of the nine-member court expressed support for the idea that persons who are charged with fraud by the SEC should be able to have their cases heard by a federal jury rather than the SEC’s own administrative law judges.

Sen. Edward Markey of the United States, who frequently attacks Meta and other Big Tech firms, described Meta’s lawsuit as a “weak attempt to avoid accountability.”

The Massachusetts Democrat Markey released a statement saying, “In the face of a potentially massive fine, Meta’s adoption of extreme, right-wing legal theories to challenge our country’s premier consumer protection agency reeks of desperation.”

US Senator Amy Klobuchar on Meta’s Lawsuit

In response to Meta’s lawsuit contesting the Federal Trade Commission’s (FTC) constitutionality, U.S. Senator Amy Klobuchar (D-MN) issued the following statement.

“Once again Meta (aka Facebook) is prioritizing profits over all else – over the safety of children, the privacy of its users, and compliance with the law. Repeatedly, Meta has violated its users’ privacy and deceived them about protections their data would have on its platforms.”

“Despite being forced to pay a $5 billion fine in 2020, the FTC found earlier this year that Meta has continued to violate the commitments it made to safeguard user privacy and misled parents about their children’s use of its apps. In response, rather than complying with the law, Meta has decided to run to court complaining that the 110-year old FTC is unconstitutional. The court must reject any argument that would weaken the FTC’s ability to enforce critical laws that protect consumers.”

Klobuchar is the sponsor of the American Innovation and Choice Online Act (AICOA), AICOA provides antitrust enforcers with up-to-date tools to combat market abuses by dominating major tech platforms while fostering competition, innovation, and consumer choice in digital markets.

The Kids Online Safety Act of 2022 (KOSA), which Klobuchar is a cosponsor of, guarantees that parents and legislators may evaluate whether social media companies are genuinely addressing risks to children.

In addition, Klobuchar is a cosponsor of the joint Children’s Online Privacy Protection Rule (COPPA 2.0), which updates internet data privacy laws for the 21st century and guarantees the safety of minors online. The Senate Commerce Committee approved this legislation in July.

The Federal Trade Commission was founded in 1914 by the Federal Trade Commission Act, and Congress has given it authority to enforce consumer protection and antitrust laws in order to shield the American people from unfair competition and fraudulent and misleading practices by companies.