Meta Platforms Inc (META.O), the company that owns Facebook agree to pay $725 million to settle a class-action lawsuit accusing the social media giant of enabling third parties, including Cambridge Analytica, to access users’ personal information.
Facebook parent company Meta has agreed to pay $725 million to resolve a long-running lawsuit accusing the social network of providing third companies, including Cambridge Analytica, access to users’ personal information.
The sum was revealed in a court filing late Thursday.
“The proposed $725,000,000 settlement is the biggest amount ever reached in a data privacy class action and the most Facebook has ever paid to end a private class action,” plaintiffs’ lawyers stated in their filing.
Facebook has not admitted any wrongdoing as part of the settlement, which must still be accepted by a judge in the US District Court for the District of Columbia’s San Francisco Division Francisco division.
In August, it was reported that Facebook had struck a preliminary agreement, though the sum and specifics of the settlement were not disclosed at the time.
In 2018, people accused Facebook of violating privacy policies by sharing their information with third parties, notably the British firm Cambridge Analytica, which was linked to Donald Trump’s 2016 presidential campaign.
According to the lawsuit, Cambridge Analytica, which has since been shut down, collected and misused the personal information of 87 million Facebook users without their consent.
This data was allegedly used to develop algorithms to manipulate US voters in Trump’s favour.
Since then, Facebook has barred thousands of apps accused of abusing its data from accessing it, reduced the amount of information available to developers, and made it easier for users to calibrate their data sharing settings.
The federal government fined Facebook $5 billion in 2019 for misleading its users and demanded independent control over its personal data processing.
The settlement must now be approved by the judges hearing the lawsuit in the Northern District of California.
“We sought a settlement because it is in the best interests of our community and stockholders.” Over the previous three years, we modified our attitude to privacy and developed a rigorous privacy programme,” a Meta representative told CNBC. As part of the agreement, the company agreed not to admit wrongdoing.
Facebook Analytica Inc.
The Cambridge Analytica scandal sparked widespread indignation and a rush of regulators to investigate Facebook’s data practices.
Following the revelations, the US Federal Trade Commission opened an investigation into Facebook, citing concerns that the social media company had violated the terms of a previous agreement with the agency, which required it to provide users with clear notifications when their data was being shared with third parties.
In 2019,Facebook agree to pay $725 Facebook reached a landmark $5 billion settlement with the FTC. Around the same time, Facebook agreed to pay $100 million to resolve a dispute with the US Securities and Exchange Commission over allegations that the firm provided deceptive disclosures about the potential of misuse of user data.
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Cambridge Analytica, which was forced to close after the allegations surfaced in 2018, was a problematic company because the data it gathered from Facebook was used to inform political campaigns.
Cambridge Analytica executives were caught by Channel 4 News in 2018 stating that the firm will deploy sex workers, bribes, ex-spies, and fake news to assist candidates win votes throughout the world.
Since the controversy, Facebook’s name has been changed to Meta to reflect the company’s rising ambitions to become a leader in the metaverse, a phrase used to describe virtual worlds. Meta runs Facebook, which is still one of the world’s largest social media companies.
However, due to a decline in the advertising industry, adjustments to Apple’s iOS privacy limitations, and greater competition from TikTok, Facebook agree to pay $725 Facebook’s expansion has slowed. Plaintiffs stated in a court statement announcing the settlement that Facebook had stopped enabling third parties to obtain data about users through their friends since the case was filed. According to the filing, the firm has also expanded its capacity to regulate and monitor how third parties acquire and use Facebook users’ information, as well as improved its procedures for informing users about the information Facebook gathers and shares about them.
Google has agreed to pay $391.5 million to 40 US states last month to settle a probe into controversial location-tracking tactics, in what state officials described as the largest such privacy settlement in US history. Separately, a judge granted a $90 million Meta settlement last month to resolve a lawsuit regarding the use of browser cookies and Facebook’s “Like” button to track user activity.
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Plaintiffs said in a court document announcing the settlement that Facebook had stopped enabling third parties to obtain data about users through their friends since the case was filed. According to the document, the firm has also increased its capacity to regulate and monitor how third parties acquire and utilize Facebook users’ information, as well as its techniques for informing users about the information Facebook gathers and shares about them.
Google consented to pay $391.5 million to 40 US states last month to resolve a probe into controversial location-tracking tactics, in what state officials described as the largest such privacy settlement in US history. Separately, a judge granted a $90 million Meta settlement last month to resolve a lawsuit regarding the use of browser cookies and Facebook’s “Like” button to track user activity.
