Facebook to Face Legal Action Over Alleged Discriminatory Advertising Practices

Facebook is facing the possibility of a lawsuit due to accusations of biased advertisement algorithms. The social media platform, owned by Meta, had previously agreed to abide by the European Union’s Digital Services Act (DSA), which includes restrictions on targeted ads towards minors and ads based on gender or race. However, Facebook is now being scrutinized for a class action lawsuit filed in 2020, claiming that the platform’s ad algorithms discriminated against older individuals by not displaying insurance ads. Initially, it was believed that Facebook was immune to lawsuits, but the court has determined otherwise. Here are the details you should be aware of.

Threat of legal action

According to a report by The Verge, the case involves 48-year-old Samantha Liapes, who tried to find an insurance company through Facebook. However, social media algorithms failed to show her appropriate ads because of her gender and age, according to the suit. The earlier ruling stated that Facebook was protected from lawsuits under Section 230 of the US Code, which protects publishers from lawsuits if the content is provided by another content provider.

However, California’s First Circuit Court of Appeals overturned the earlier decision, finding that Facebook could be sued for violating California’s civil rights laws. According to a press release from the American Civil Liberties Union (ACLU), in the case of Samantha Liapes et al., v. Facebook, Inc., it has been made clear that Facebook is not immune from lawsuits and that the allegations were sufficient for a lawsuit.

David Brody, lead attorney for the Digital Justice Initiative, said in a statement: “It is unacceptable to target ads and direct important economic opportunities based on protected characteristics such as race or gender. This decision makes clear that discriminatory algorithms and business models must change.

Previous allegations

This isn’t the first time Facebook has come under heavy scrutiny for its ads. In 2018, the US federal government filed charges against the social media platform, alleging that it allowed ads that discriminated against protected groups, in violation of the Fair Housing Act. In 2022, the company settled with the US Department of Justice (DOJ), promising to introduce a new system for advertising. A new system called the Variance Reduction System (VRS) was introduced in January this year to create an “even distribution of ads”.