Facebook, the world’s largest social media platform with over 2 billion monthly active users, has faced increasing scrutiny and legal action related to its data collection and user tracking practices. Here is an overview of some of the lawsuits and investigations Facebook has faced regarding its user tracking and privacy issues.
Background on Facebook Tracking and Targeted Advertising
Facebook collects large amounts of data about its users including profile information, posts, likes, shares, and browsing habits both on and off Facebook via pixels and social plugins. This enables Facebook to build detailed profiles about users’ interests, behaviors, and preferences.
A key way Facebook monetizes this data is through targeted advertising. Advertisers can target highly specific audiences based on demographics, interests, behaviors, and more. User data allows ads to be tailored to individual interests and needs. Targeted ads are more effective, valuable, and generate much higher revenues.
Types of Data Facebook Collects
Some of the main types of user data Facebook collects includes:
- Profile information – name, age, location, education, relationship status
- Posts, photos, videos, and other content
- Likes, shares, clicks, and other engagement
- Groups and friends
- Browsing history, search history, and activity on Facebook
- Activity on websites and apps off Facebook via pixels and social plugins
- Device attributes, operating systems, identifiers
- Purchase history and habits via partnerships with data brokers
How Facebook Tracks Users
Facebook employs various methods to track users both on and off its platform. These include:
- Pixels – tiny transparent images embedded on websites that track visits, clicks, purchases
- Social plugins – Like and Share buttons that track browsing on external sites
- Identifiers – unique device IDs, cookies, IP addresses
- Partnerships – data sharing agreements with brands, apps, data brokers
- Acquisitions – user data obtained through purchasing companies like WhatsApp
Lawsuits and Investigations Into Facebook Tracking
Facebook has faced numerous lawsuits and government investigations into its user tracking and data privacy practices including:
Cambridge Analytica Scandal
In 2018 it was revealed that the data analytics firm Cambridge Analytica improperly obtained data on 87 million Facebook users via a quiz app. The firm used the data to build psychological profiles on voters which were allegedly used to target political ads and content.
This massive leak of user data without permission sparked global outrage and government investigations. Facebook was widely criticized for allowing third parties access to user information without proper oversight. The scandal illuminated Facebook’s data sharing practices and raised consumer data privacy concerns.
2011 FTC Consent Decree
In 2011 Facebook settled with the FTC over complaints it had deceived consumers over privacy settings. Under the consent decree, Facebook agreed to obtain user consent before overriding privacy settings and to undergo privacy audits for 20 years.
Critics argued Facebook had still not adhered to the consent decree’s requirements on transparency and oversight in allowing third parties access to data.
Illinois Biometric Privacy Lawsuits
Multiple class action lawsuits were filed against Facebook in Illinois under the state’s Biometric Information Privacy Act (BIPA). The suits allege Facebook’s photo tagging feature that uses facial recognition violates BIPA by collecting and storing biometric data without informed user consent.
Facebook has appealed a $650 million settlement in one of the suits. The technology raises privacy concerns as facial recognition expands on social media and other apps.
Tracking and Ad Targeting Lawsuits
Consumer advocacy groups and individuals have filed lawsuits alleging Facebook unlawfully tracks users’ browsing activity on external websites without consent. This includes using pixels, social plugins, identifiers, and partnerships to target ads. Suits claim this violates federal and state privacy and wiretapping laws.
For example, a class action lawsuit filed in California federal court in 2022 alleges Facebook violated privacy and competition laws by tracking users after they logged out of Facebook. Other suits make similar claims of tracking users across devices and apps without permission.
Location Tracking Claims
Lawsuits have claimed Facebook tracked users’ locations through mobile apps and features without full transparency or consent. A proposed class action filed in California in 2022 alleges Facebook tracked locations when users’ locations services were turned off.
Locations services raise privacy issues as mobile devices enable persistent location tracking of individuals over time and space.
Young Users Under Age 13
Facebook prohibits children under age 13 from creating accounts. However, consumer groups have filed FTC complaints claiming Facebook collected data on underage users without parental consent in violation of the Children’s Online Privacy Protection Act (COPPA).
Facebook could face potential liabilities related to collecting data on tweens without proper notifications or controls.
European Investigations
European regulators have initiated numerous investigations and penalties against Facebook for privacy violations under the General Data Protection Regulation (GDPR). This includes probes of Facebook’s data sharing practices and tracking tools.
In 2022, Facebook parent company Meta was fined €265 million by Ireland’s data regulator for violations in handling user data.
FTC Antitrust Lawsuit
In 2020 the FTC and over 40 states filed an antitrust lawsuit alleging Facebook used its market power to stifle competition. The lawsuit claims Facebook acquired rivals like Instagram and WhatsApp to maintain its monopoly and calls for Facebook to be required to sell off the units.
Though an antitrust claim, the lawsuit could have privacy implications if Facebook is forced to unwind previous acquisitions that gave it access to increased user data.
Status and Outcomes of Major Lawsuits
Many of the lawsuits and probes into Facebook’s privacy practices remain ongoing. Outcomes and significant events in major cases include:
| Lawsuit/Investigation | Status and Outcomes |
|---|---|
| Cambridge Analytica Scandal | The FTC fined Facebook $5 billion in 2019 for privacy violations related to the scandal. Facebook continues to face litigation over the data leak. |
| 2011 FTC Consent Decree | The decree remains in place with requirements for Facebook to undergo regular privacy audits. Groups have claimed Facebook violated the consent order. |
| Illinois BIPA Lawsuits | The $650 million class action settlement was appealed by Facebook and remains pending. Other BIPA cases are ongoing. |
| Tracking and Ad Targeting Lawsuits | These lawsuits were consolidated in California federal court and remain pending as of late 2022. |
| Location Tracking Claims | The lawsuit over location tracking was filed in 2022 and remains pending. |
| Underage User Complaints | Consumer groups have filed FTC complaints, but no major enforcement action has been publicly disclosed. |
| European Investigations | Facebook continues to face large fines and orders to change data practices under GDPR rules. |
| FTC Antitrust Lawsuit | The case remains pending as of late 2022. |
Implications and Future of Facebook Privacy Litigation
Facebook will likely continue to face extensive litigation and probes over its privacy practices for years to come. Key implications include:
- Billions in potential damages, fines, and settlements if Facebook loses cases
- Court orders or settlements requiring improvements to data practices
- Stricter regulatory oversight of its ad tracking and targeting
- Mandates to obtain explicit opt-in consent for more data collection
- Possible spin-offs or unwinding of previous acquisitions like Instagram and WhatsApp
- Decreased ability to leverage user data to target ads if restrictions are imposed
Consumer advocates will push for stronger enforcement and even breaking up Facebook given concerns over its market dominance and data aggregation. However, Facebook will likely continue fighting lawsuits and deny claims of privacy violations.
There are complex legal and technical issues surrounding digital advertising, tracking tools, and data sharing that courts continue working to address. But the period ahead will see increasing efforts to regulate Facebook’s privacy practices and data collection through legislation, lawsuits, and scrutiny of its market power.
Consumer Opinion on Facebook Privacy
Surveys show consumer opinion has soured on Facebook’s handling of personal data:
- A 2021 Pew Research survey found 81% of US adults believe Facebook has too much power and influence.
- A 2022 poll showed 78% believe laws should be passed to protect online privacy and limit how internet companies track activities.
- Surveys indicate declining trust in Facebook to responsibly manage personal information without consent.
consumers generally want more say and control over how Facebook handles their data. This public opinion fuels political and regulatory pressures on Facebook to reform its privacy practices.
Conclusion
Facebook faces increasing legal risks and liability related to alleged privacy violations and tracking of users without consent. Major lawsuits and government investigations continue to advance through the courts. These cases levy claims that Facebook broke laws related to biometric data, wiretapping, unfair competition, and protection of children’s privacy.
The outcomes of pending cases remain uncertain but could impose substantial fines, damages, restrictions on data practices, or other penalties if Facebook loses. Even if Facebook prevails legally, the litigation spotlights concerns over its market dominance and centralized control of personal data of billions of people worldwide. Facebook is likely to remain under regulatory and legal scrutiny for years to come regarding its tracking of users across websites and devices.