By: Stephanie Brown
U.K. politicians have raised concerns as to how social networks, led by Facebook Inc. (NASDAQ:FB) use information shared on their platforms by users. After completing an inquiry that analyzed privacy policies that users agree to when joining, they asked the government to develop information standards that should be geared towards upholding privacy standards.
The inquiry sought to force the likes of Facebook to explain how they use personal data shared on the platform. It is a common phenomenon for users to agree to the ‘terms of use’ without actually reading it because they are too long. Politicians are pushing for a benchmark that will seek to regulate the use of consumer data, especially for U.K. citizens.
Andre Miller, the chairman of the committee reiterated that very few people ever take the time to read the terms and conditions contracts generated by social media giants such as Facebook and Twitter. The terms of use are usually very long and normally written in the kind of language that more-often-than-not requires legal interpretation.
Miller believes that socially responsible companies should not to bombard users with too much data during the signup process. Simplifying the data that it is straight to the point remains highly essential. The UK’s Science and Technology Select Committee wants something to be done and is trying to push government to enact simpler disclosures that explain how users personal information is used. Some companies led by Facebook already started developing terms and conditions that are a little more understandable.
Technical Analysis
When looking at the daily chart, Facebook closed flat in Friday’s trading session at $77.70. The stock is currently trading above its 20-Day EMA of $75.40 and has been making higher-highs since the past few trading sessions. Its Aroon Oscillator stands at 35.7 and is moving up, indicating that an uptrend just commenced.
Actionable Insight
Buy Facebook Inc. (NASDAQ:FB) above $78 for target of $78.9, $79.5 with a stop-loss of $77.55.
