Facebook to settle privacy allegations with federal regulators: Report

The Federal Trade Commission is set to announce Wednesday that Facebook has agreed to pay about $5 billion to settle allegations that it mishandled user privacy, Reuters reported on Tuesday, citing two people briefed on the matter.

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As part of the settlement, the Menlo Park, California-based company will agree to create a board committee on privacy and will agree to new executive certifications on user privacy, the people told Reuters.

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FBFACEBOOK INC.190.39+0.84+0.44%

Earlier, the Washington Post reported that the FTC plans to allege that social media giant misled users about its handling of their phone numbers in addition to its use of a two-factor authentication feature, which allows users to receive a single-use password every time they log into their Facebook account.

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