WEBVTT - Facebook’s Former Employees Open Up About the Data Scandal

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<v Speaker 1>The past two weeks have been some of the most

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<v Speaker 1>devastating for Facebook. The Federal Trade Commission has confirmed it

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<v Speaker 1>is investigating Facebook's privacy practices. Facebook stock dropping even lower

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<v Speaker 1>in the fallout, and this morning, Facebook executives are heading

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<v Speaker 1>the Capitol Hill. Can Mark Zuckerberg keep both advertisers and

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<v Speaker 1>lawmakers happy? Many of you will know the highlights by now.

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<v Speaker 1>There's that political consulting firm called Cambridge Analytica, which got

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<v Speaker 1>information on fifty million Facebook users, mostly without their permission,

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<v Speaker 1>and they later went on to advise Donald Trump on

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<v Speaker 1>its presidential campaign. Cambridge Analytica told Facebook that it deleted

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<v Speaker 1>the data, then two weeks ago stories in The Guardian

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<v Speaker 1>and The New York Times declared that it didn't. People

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<v Speaker 1>were so furious they started deleting their Facebook profiles, and

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<v Speaker 1>as of this taping, Facebook stock lost tens of billions

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<v Speaker 1>of dollars in value. Inside Faceboo's headquarters in Menlo Park,

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<v Speaker 1>the atmosphere right now is pretty tense. Employees are distracted,

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<v Speaker 1>reading the news, mingling in small groups to whisper about

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<v Speaker 1>the latest one the crisis. Many of them joined Facebook

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<v Speaker 1>because they felt like it was doing something really good

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<v Speaker 1>for the world. It had a mission everyone believed in,

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<v Speaker 1>but now some of them aren't so sure. For both

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<v Speaker 1>current and former Facebook employees, this is not just about

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<v Speaker 1>Cambridge Analytica. It's become this moment of reckoning, of realizing

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<v Speaker 1>this immense power that Facebook now holds and the responsibilities

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<v Speaker 1>of that. Hi Imako and I'm Sarah Friar, and this

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<v Speaker 1>week on Decrypted, we're going to hear from a number

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<v Speaker 1>of former insiders at the social network. We the public

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<v Speaker 1>are still discovering things that Facebook really does with our data,

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<v Speaker 1>and for a lot of people, the realizations have been

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<v Speaker 1>a little shocking some of them. Value with its tight

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<v Speaker 1>knit community, can be a hard place to speak out.

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<v Speaker 1>That's especially the case for people who've worked for Facebook.

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<v Speaker 1>But now after a series of controversies, some former employees

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<v Speaker 1>are starting to air their hesitations and criticisms in public.

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<v Speaker 1>And with that, we're getting our first peek into the

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<v Speaker 1>culture that led to Facebook's crisis. Today, stay with us, So, Sarah,

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<v Speaker 1>let's start with some context back a couple of years ago.

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<v Speaker 1>Is incredibly unusual for a former employee to criticize Facebook publicly. Yeah,

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<v Speaker 1>Facebook has this culture where they really wanted to feel

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<v Speaker 1>like a family, and you're given access to all this

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<v Speaker 1>non public information about the company roadmap, so employees feel

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<v Speaker 1>an immense responsibility to keep it safe your Facebook friends,

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<v Speaker 1>with all your coworkers. If you speak to the press,

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<v Speaker 1>you're hurting the family, right, And the company is known

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<v Speaker 1>for searching for leakers. Zacher Berry actually announces at all

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<v Speaker 1>hands meetings when someone who leaked gets fired, and sometimes

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<v Speaker 1>people applaud. Employees are told that once they leave, they're

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<v Speaker 1>still part of the Facebook family, which has extensive reach

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<v Speaker 1>and influence across the Silicon Valley, so don't screw it up.

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<v Speaker 1>But we did start to see more people speak up

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<v Speaker 1>right after Trump won the election in the fall of right.

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<v Speaker 1>So Facebook is headquartered right here in the Bay Area,

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<v Speaker 1>which is a very progressive place, so a lot of

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<v Speaker 1>people who worked at Facebook lean towards the liberal side too. Yeah,

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<v Speaker 1>and they wondered if they are, in tiny or big ways,

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<v Speaker 1>partly responsible for Trump's victory. This is something we covered

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<v Speaker 1>on the show in an episode back then, and people

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<v Speaker 1>have been talking about it since. I've spoken to a

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<v Speaker 1>lot of former and current employees over the last year

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<v Speaker 1>and a half who are definitely they're grappling with this

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<v Speaker 1>question in pretty personal ways. They're facing questions from their

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<v Speaker 1>own friends about whether Facebook has been doing the right thing.

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<v Speaker 1>And we've seen that with fake news and Russia's manipulation

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<v Speaker 1>of the election. And you've had a very busy job

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<v Speaker 1>over the last year and a half. It's been a

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<v Speaker 1>little crazy. At the end of last year, to moth

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<v Speaker 1>Paula Hapatia, he's now a high profile investor, but used

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<v Speaker 1>to be a key executive in Facebook's early days of growth.

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<v Speaker 1>He talked to a group of Stanford University students about

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<v Speaker 1>some soul searching he was doing. I feel tremendous guilt. Um.

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<v Speaker 1>I think we I think we all knew in the

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<v Speaker 1>back of our minds, even though we feigned this whole

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<v Speaker 1>line of like there probably aren't any really bad, unintended consequences.

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<v Speaker 1>I think in the back, deep, deep recesses of our minds,

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<v Speaker 1>we we kind of new something bad could happen. Chama

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<v Speaker 1>was talking to a pretty small audience, but these comments

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<v Speaker 1>just blew up in the media. He probably wasn't expecting it.

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<v Speaker 1>Since he's a good friend of the management team at Facebook.

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<v Speaker 1>You can imagine he got a lot of calls and

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<v Speaker 1>text after that. Because he then made this strange appearance

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<v Speaker 1>on TV where he said he wasn't talking about Facebook,

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<v Speaker 1>he was talking about social media in general. It's not

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<v Speaker 1>like he was trying to walk it all back. Jam

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<v Speaker 1>isn't the only one who made his name off Facebook

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<v Speaker 1>and is talking about them now. Sean Parker, who joined

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<v Speaker 1>Mark Zuckerberg in Facebook's earliest days and was the president

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<v Speaker 1>of the company for a while. A huge chunk of

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<v Speaker 1>his wealth comes from his time at Facebook, and he

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<v Speaker 1>said last year that these tools were built to psychologically

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<v Speaker 1>manipulate people. Just In Rosenstein. He's the guy who's credited

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<v Speaker 1>with inventing Facebook's like button. No words about technology addiction

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<v Speaker 1>and Chris Hughes, one of Facebook's co founders, talked of

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<v Speaker 1>Limberg in an interview that was taped a couple of

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<v Speaker 1>months ago. I think Mark in particular has been really

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<v Speaker 1>clear about Facebook's responsibility in the election and has taken

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<v Speaker 1>stock of his own responsibility to think about how Facebook

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<v Speaker 1>influences our politics and our culture, and the recent changes

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<v Speaker 1>with the news feed and some of the other things

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<v Speaker 1>that they're doing are a reflection of that. But the

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<v Speaker 1>first step is understanding that that responsibility exists and I think,

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<v Speaker 1>at least in Facebook's case, there's an embrace of that.

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<v Speaker 1>Then two weeks ago, the criticism around Facebook notched into

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<v Speaker 1>higher gear after the news broke that Cambridge Analytica still

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<v Speaker 1>had the data it improperly obtained millions of people. More

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<v Speaker 1>people came forward to voice their criticism of Facebook. One

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<v Speaker 1>vocal critic has been Sandy Parkles. His job was to

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<v Speaker 1>address data privacy issues with regards to all the external

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<v Speaker 1>apps that get access to our data on Facebook when

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<v Speaker 1>we log in using Facebook. Right after the Cambridge Analytica

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<v Speaker 1>scandal broke, Sandy wrote an op ed in the Washington

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<v Speaker 1>Post apparently in two thousand twelve, way before Cambridge Analytica

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<v Speaker 1>harvested the data on the millions of users, he tried

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<v Speaker 1>to warn Facebook's executives about the lack of protections that

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<v Speaker 1>were in place. Sandy taped this interview with PBSS Frontline

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<v Speaker 1>before the scandal broke because I had been the main

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<v Speaker 1>person who was working on uh privacy issues with respect

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<v Speaker 1>to Facebook platform, which had many, many, many privacy issues.

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<v Speaker 1>It was it was a real hornets nest of problems

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<v Speaker 1>because they were giving access to all this Facebook data

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<v Speaker 1>to developers with very few controls. Sandy was actually a

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<v Speaker 1>musician before he decided to go back to grad school

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<v Speaker 1>and get into tech, and this was his first job

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<v Speaker 1>in the tech industry. Due to i'd say organizational chaos

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<v Speaker 1>and you know, a lack of prioritization of privacy, ended

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<v Speaker 1>up being me, what did you think about that? At

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<v Speaker 1>the time, I was horrified. I didn't think it always qualified.

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<v Speaker 1>Did you say that to anybody? I did? Yeah, I did,

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<v Speaker 1>And the response I got back was basically, you know,

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<v Speaker 1>don't you think this is important? It was essentially people

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<v Speaker 1>above me didn't want to be on the hook for this.

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<v Speaker 1>I spoke to another former Facebook employee, someone who joined

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<v Speaker 1>long after Sandy left. His name is Kevin Lee, and

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<v Speaker 1>when he was at Facebook, he worked on global spam operations.

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<v Speaker 1>This is his first time speaking out about it. My

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<v Speaker 1>team was more focused on the mass scale of these things,

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<v Speaker 1>so it's really around bought attacks and really mass creation

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<v Speaker 1>of either of fake profiles or the mass kind of

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<v Speaker 1>takeover of legitimate accounts to spread either misinformation or scams.

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<v Speaker 1>Kevin started at Spoke in November and left the company

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<v Speaker 1>two years later right after the presidential election. The focus

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<v Speaker 1>of the current scandal how app developers were able to

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<v Speaker 1>access data on millions of people. Well, that fell outside

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<v Speaker 1>of Kevin's purview, but still he was able to see

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<v Speaker 1>that Facebook wasn't in the habit of enforcing its terms

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<v Speaker 1>and conditions with developers. In this case, hindsight is here.

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<v Speaker 1>I think the biggest area that was not adhered to

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<v Speaker 1>or not given enough attention was specifically around the enforcement

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<v Speaker 1>of developer policies. So the developer policies were changed to

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<v Speaker 1>be more private and kind of keep user information more

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<v Speaker 1>secure and more kind of private. However, there wasn't enough

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<v Speaker 1>enforcement in my opinion, in terms of Okay, now that

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<v Speaker 1>we've changed our policies, are we really are we double

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<v Speaker 1>checking to make sure that the people that had access

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<v Speaker 1>to this data prior have deleted it or have taken

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<v Speaker 1>the necessary steps to remove it. I don't think from

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<v Speaker 1>a enforcement standpoint that was there was enough attention paid there.

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<v Speaker 1>So when you were at Facebook, why do you why

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<v Speaker 1>do you think they didn't devote more resources into enforcements.

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<v Speaker 1>I mean, I can hypothesize that's really more of a

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<v Speaker 1>developer um community question. I think there were resources devoted

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<v Speaker 1>to it, but there's always a trade off in terms

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<v Speaker 1>of Okay, we want to open up our developer APIs,

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<v Speaker 1>we want to grow the company, and oftentimes there's this

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<v Speaker 1>trade off between security and privacy versus opening up the

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<v Speaker 1>platform and making it as viral or really addictive as possible.

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<v Speaker 1>And some of those decisions, um, maybe we're made more

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<v Speaker 1>on the growth side of things, and UH as a

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<v Speaker 1>result opened them up to more potential exposure to some

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<v Speaker 1>case just like this. This is actually something that I've

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<v Speaker 1>heard a lot from other form we're in current employees

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<v Speaker 1>that Facebook prioritize growing its user base over other needs

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<v Speaker 1>like securing user data. There was a internal model at

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<v Speaker 1>Facebook and it's been published. The mottel was like move

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<v Speaker 1>fast and break things, and that was very much a

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<v Speaker 1>mantra that the company followed for years. I think, I

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<v Speaker 1>mean it's shifted a bit, but essentially, unfortunately in this case,

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<v Speaker 1>the company did move fast and what it broke was

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<v Speaker 1>really user trust and now there's a lot of repair

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<v Speaker 1>work and a lot of goodwill that needs to be

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<v Speaker 1>build again. For some people, the public criticism of Facebook

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<v Speaker 1>put them in a pretty awkward position. This is what

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<v Speaker 1>one former employee, Brett Taylor, told her colleague Emily Chang

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<v Speaker 1>on Bloomberg TV. You have people like Brian Acton, the

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<v Speaker 1>co founder of WhatsApp, which Facebook bought for twenty billion dollars,

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<v Speaker 1>saying to delete Facebook, and other former Facebook insiders, you know,

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<v Speaker 1>really talking about out the potential threats of the social network.

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<v Speaker 1>Are you in that camp? You know? I I have

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<v Speaker 1>a great deal of you know, personal connection and loyalty

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<v Speaker 1>to that company, So it is obviously sort of uncomfortable

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<v Speaker 1>for me to talk about. The thing I would say

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<v Speaker 1>is that I do think that it's the right way

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<v Speaker 1>to think about it. Is that these technologies have changed

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<v Speaker 1>sort of the landscape of our society. Um, you know,

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<v Speaker 1>everything from the smartphone. We can call that the artful dodge. Well,

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<v Speaker 1>even with more people speaking up, there's still this expectation

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<v Speaker 1>to keep your agreements as private. There are two things

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<v Speaker 1>that happened just this week that illustrate this. So I

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<v Speaker 1>got a tip on a project and I asked a

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<v Speaker 1>current employee about it. Everyone at Facebook has access to

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<v Speaker 1>all of this information internally, but he was afraid to

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<v Speaker 1>even search for the code name I gave him because

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<v Speaker 1>Facebook would be able to see his query. No, he

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<v Speaker 1>talked to me and fire him. I told him don't

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<v Speaker 1>worry about it. I don't want you to get fired.

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<v Speaker 1>In another case, a former employee posted online that they'd

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<v Speaker 1>be able to help people understand the Cambridge Analytica scandal.

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<v Speaker 1>The post didn't stay up very long. They've removed it

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<v Speaker 1>when Facebook sent them and note reminding them of their

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<v Speaker 1>contractual confidentiality agreement. So Facebook had someone following all this

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<v Speaker 1>internet chatter seems like it, but some people in Facebook's

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<v Speaker 1>community do see a silver lining to the crises that

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<v Speaker 1>the company has gone through, like Michael Hofflinger. He worked

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<v Speaker 1>on ads at Facebook and went on to write a

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<v Speaker 1>book about the company. Michael told me that he hopes

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<v Speaker 1>this could be a lesson that will make Facebook a

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<v Speaker 1>better company in the future, you know, and I hope

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<v Speaker 1>that in this discussion, in the critique that's coming, especially

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<v Speaker 1>from folks that have been inside of Facebook, that the

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<v Speaker 1>objective really is to get to a future where we

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<v Speaker 1>become smarter at how we build, more empathetic about how

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<v Speaker 1>we build, not about not building. And Facebook has already

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<v Speaker 1>announced some changes. There was a big one just this

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<v Speaker 1>week about how they're limiting the third party data that

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<v Speaker 1>advertisers can use to target people on the network. This

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<v Speaker 1>is something that could actually make it harder for advertisers

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<v Speaker 1>to use Facebook. That's not usually the direction they move in. Yeah,

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<v Speaker 1>it means less money for Facebook, right right, It could

0:14:21.880 --> 0:14:25.200
<v Speaker 1>potentially mean that. And then there is, according to my sources,

0:14:25.320 --> 0:14:28.960
<v Speaker 1>just this in depth review happening at Facebook and every

0:14:29.000 --> 0:14:33.400
<v Speaker 1>team going through all the different data uses of every

0:14:33.440 --> 0:14:36.240
<v Speaker 1>part of Facebook and figuring out if those are actually necessary,

0:14:36.320 --> 0:14:38.360
<v Speaker 1>like do we need this data in order to create

0:14:38.400 --> 0:14:41.000
<v Speaker 1>a better user experience. So I'm sure we're going to

0:14:41.160 --> 0:14:45.040
<v Speaker 1>keep learning more of the next few weeks, and publicly,

0:14:45.280 --> 0:14:49.200
<v Speaker 1>we're going to hear from CEO Mark Zuckerberg testifying in

0:14:49.240 --> 0:14:51.800
<v Speaker 1>front of Congress pretty soon. We don't know exactly when,

0:14:51.840 --> 0:14:55.120
<v Speaker 1>but it'll happen. What's the number one thing you'll be

0:14:55.160 --> 0:14:58.160
<v Speaker 1>looking for in that testimony. I just think it's going

0:14:58.240 --> 0:15:01.400
<v Speaker 1>to be so difficult for him because a lot of

0:15:01.440 --> 0:15:05.800
<v Speaker 1>these questions are about things Facebook did wrong so many

0:15:05.880 --> 0:15:09.200
<v Speaker 1>years ago, and the way somebody explained it to me.

0:15:10.960 --> 0:15:13.560
<v Speaker 1>One of the users I talked to actually explained to

0:15:13.600 --> 0:15:15.840
<v Speaker 1>the best. He said, it's like toothpaste out of the tube,

0:15:16.120 --> 0:15:20.240
<v Speaker 1>like the data that Facebook shared with developers way back

0:15:20.280 --> 0:15:24.000
<v Speaker 1>when they are not able to tell Congress today where

0:15:24.040 --> 0:15:27.200
<v Speaker 1>that data is now. There was no like auditing that

0:15:27.280 --> 0:15:30.640
<v Speaker 1>happened back then to try to chart this out. So

0:15:30.760 --> 0:15:32.520
<v Speaker 1>zach Arberg is going to go to Congress and he's

0:15:32.520 --> 0:15:36.040
<v Speaker 1>going to be explaining how far Facebook has come and

0:15:36.080 --> 0:15:38.800
<v Speaker 1>protecting its users, and he has to hope that that

0:15:38.840 --> 0:15:42.400
<v Speaker 1>will be enough. You know, ahead of this episode, we

0:15:42.520 --> 0:15:45.520
<v Speaker 1>asked our listeners to send in their own questions for

0:15:45.640 --> 0:15:48.600
<v Speaker 1>Mark Zuckerberg. We'll close our episode today with a couple

0:15:48.640 --> 0:15:55.240
<v Speaker 1>of our favorites. Rebecca goose Man from Burlston, Texas. Why

0:15:55.240 --> 0:15:59.000
<v Speaker 1>should we stay on your platform after your company violated

0:15:59.040 --> 0:16:02.560
<v Speaker 1>the trust and I have to see of millions of users. Hi,

0:16:02.800 --> 0:16:05.600
<v Speaker 1>my name's Marcus. I'm from Germany and my question is

0:16:06.080 --> 0:16:09.440
<v Speaker 1>Mrs Lackaberg. How can you justify deliberately deceiving all of

0:16:09.480 --> 0:16:12.760
<v Speaker 1>your users to get access to their private information even

0:16:12.800 --> 0:16:15.840
<v Speaker 1>though your apps and the disclaim is involved a delusive

0:16:16.040 --> 0:16:19.400
<v Speaker 1>and non exhaustive referring to the excessive amounts of data

0:16:19.440 --> 0:16:22.560
<v Speaker 1>that you actually collect. Greg Wall. At the end of

0:16:22.560 --> 0:16:24.760
<v Speaker 1>the day, Mark, will you and your product be a

0:16:24.800 --> 0:16:29.000
<v Speaker 1>tool for greater good or a tool for mass surveillance?

0:16:29.800 --> 0:16:34.320
<v Speaker 1>This is Paul Johnson from Pennsylvania, Sincerely, at night, when

0:16:34.320 --> 0:16:37.520
<v Speaker 1>it's you got an a pillow? Do you ever think

0:16:37.560 --> 0:17:00.360
<v Speaker 1>that anything that you've done is wrong? And then for

0:17:00.400 --> 0:17:03.720
<v Speaker 1>this week's episode of Decrypted, thanks for listening. We'd love

0:17:03.720 --> 0:17:05.680
<v Speaker 1>to hear what you thought of today's show. You can

0:17:05.760 --> 0:17:08.800
<v Speaker 1>email us at Decrypted at bloomberg dot net, or you

0:17:08.840 --> 0:17:11.520
<v Speaker 1>can find me on Twitter at Sarah Fryar and I've

0:17:11.520 --> 0:17:14.760
<v Speaker 1>met aki Eto seven. If you haven't already, we hope

0:17:14.800 --> 0:17:18.560
<v Speaker 1>you'll subscribe to Decrypted wherever you get your podcasts, and

0:17:18.640 --> 0:17:21.000
<v Speaker 1>while you're there, please leave us a rating in a review.

0:17:21.320 --> 0:17:23.320
<v Speaker 1>I read all of them as they come in, and

0:17:23.320 --> 0:17:26.480
<v Speaker 1>they really help us reach more listeners. This episode was

0:17:26.560 --> 0:17:30.040
<v Speaker 1>produced by Pia gut Car, Liz Smith, and Magnus Hendrickson.

0:17:30.400 --> 0:17:33.880
<v Speaker 1>Francesca Levy is the head of Bloomberg Podcast. We'll see

0:17:33.880 --> 0:17:35.040
<v Speaker 1>you next week.