The New York State Attorney General reportedly plans to investigate Facebook for unauthorized collection of email contacts from new users.
The investigation will focus on a period of time when Facebook (FB) - Get Facebook, Inc. Class A Report harvested the email address books of new users without first asking for permission, the New York Times reported, citing unnamed sources. That practice was first reported by Business Insider. Facebook told the website that the email collection during that time was "unintentional."
According to the reports, Facebook uploaded the email contacts of 1.5 million new Facebook users beginning in May 2016, which were accessed when those new users were prompted to enter their email password upon signing up for Facebook. That triggered an automatic upload of the users' email contacts without notifying users. It isn't known how many emails Facebook collected in total.
Facebook shares are up more than 35% year-to-date. They rose Thursday in the wake of better-than-expected earnings for the latest quarter.
Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable trust.