In recent years, there has been growing concern over internet privacy and how tech giants like Facebook track user data. A class action lawsuit was filed against Facebook alleging it violated privacy laws by tracking peoples’ internet activity, even after logging out of the platform. Here we break down the details of this case and what it could mean for internet privacy.
What is the Facebook tracking lawsuit about?
In 2015, a class action lawsuit was filed in federal court against Facebook alleging it violated privacy laws by tracking users’ browsing activity even after they had logged out of the platform. The plaintiffs accused Facebook of inserting tracking cookies and pixels on third party websites to monitor users surfing habits. This enabled Facebook to build detailed profiles and target ads, without consent. The lawsuit contends this violated federal wiretapping laws and California privacy statutes.
Key allegations in the lawsuit
- Facebook tracked users’ browsing activity without consent after logging out of platform
- Inserted tracking pixels and cookies enabled surveillance of users’ web surfing
- Building user profiles from data violated federal and state privacy laws
- Users had reasonable expectation of privacy after logging out of Facebook
What settlement has Facebook offered?
To avoid a trial, Facebook agreed to settle the class action lawsuit in February 2022. The settlement establishes a $90 million fund to compensate users in the class action. Here are key details of the settlement:
Settlement fund
- $90 million fund to compensate potentially millions of users
- Users get minimum of $200 each after fees/expenses deducted
- Users who submitted claims by deadline get equal share of balance
Changes to platform
- Improved consent practices for tracking cookies/pixels
- Settings to opt-out of off-Facebook tracking
- Deletion of some data collected from tracked non-users
While denying wrongdoing, Facebook agreed to the settlement to avoid further litigation. It maintains that users consented to tracking and that it followed privacy laws.
Who is eligible for the settlement?
The settlement aims to compensate a class of Facebook users who had accounts between April 2010 and September 2011 and were potentially impacted by the tracking practices. To be eligible, class members had to have visited non-Facebook websites that had Facebook tracking cookies/pixels during this period. Hundreds of millions could be eligible.
Requirements for eligibility
- Had active Facebook account April 2010 – September 2011
- Visited non-Facebook sites with Facebook cookies/pixels
- Traffic data sent back to Facebook from visited sites
Users who want compensation had to submit claims by the deadline. Valid claims will receive equal shares of the $90 million fund after fees and expenses.
How much will each user get?
With potentially millions of class members, each individual payment may be small. Under the terms, after court-approved fees and expenses are deducted, the remaining settlement funds will be divided equally among all valid claims.
| Settlement Fund | $90 million |
|---|---|
| Attorney Fees/Expenses | – $22.5 million (estimated) |
| Balance | $67.5 million |
| Valid Claimants | 5 million (estimated) |
| Payment Per Claimant | $13.50 |
As shown in the table above, with legal fees and 5 million claimants assumed, each user could get around $13.50. But the actual payment amounts remain uncertain and could be higher or lower depending on the number of claims and other factors.
How can users submit a claim?
Eligible class members had to fill out and submit a claim form online or by mail before the deadline. The settlement website contains instructions and the claim form users need to get compensation. Here are the steps to file a claim:
- Go to FacebookTrackingSettlement.com and download the claim form
- Fill out the claim form with your Facebook and contact info
- Confirm you were a Facebook user between 2010-2011
- Check the box that you visited sites with Facebook cookies or pixels
- Submit the completed claim form online or mail it
Claims had to be submitted by March 22, 2022 to be considered valid. Users can contact the claims administrator by email or phone if they have questions about filing.
What does this settlement mean for internet privacy?
This legal case highlights growing concerns around internet user privacy and tracking by tech platforms. While the settlement provides some compensation and changes, critics argue it is not enough to curb invasive tracking practices. Here are some key implications:
Increased scrutiny of tech companies
- Sends message that privacy matters and tech giants are being watched
- Opens door for more privacy-related lawsuits and regulation
- Tech companies like Facebook face growing pressure to reform data practices
More consumer awareness
- Highlights how much personal data is collected by tech platforms
- Informs public of surveillance risks from online tracking
- May encourage more users to beef up privacy settings and protections
Need for greater protections
- Critics say reforms in settlement do not go far enough
- May build support for stronger privacy legislation
- Need oversight and limits on how personal data is used and commodified
Conclusion
The Facebook tracking lawsuit settlement sheds light on concerns around internet privacy and surveillance by tech giants. While it provides some remedial action, many argue for far stronger protections and limits on data collection practices. Nonetheless, the case represents a step toward holding technology companies accountable and making them more transparent. There are still many open questions around safeguarding personal privacy in the digital age.