A Call for Regulation: Facebook’s Dangerous Disregard for Data Privacy
The 2016 American presidential election demonstrated unprecedented political polarization which continues to intensify, fueled by social media. Despite data privacy concerns, there has been minimal regulation of social media following the 2016 election. Thus, in another contentious election year, the links among social media, data privacy, and polarization demand further investigation. In this piece, I examine the landmark settlement In re: Facebook, Inc. Consumer Privacy User Profile Litigation, in which Facebook’s parent company Meta was required to pay $725 million to plaintiffs for failing to properly protect users from third-party access to their data.
First, I will discuss the 2018 Cambridge Analytica scandal and the impacts of unregulated data privacy in the United States. Amidst growing popular concerns about privacy, I will discuss the 2023 class action lawsuit In re: Facebook, Inc. Consumer Privacy User Profile Litigation. I evaluate the impacts of this historic settlement, including the large cash payout to plaintiffs and Facebook’s lack of true accountability. Finally, I will argue that the government must take regulatory action to ensure data privacy for social media users, especially ahead of the 2024 presidential election.
In re: Facebook, Inc. Consumer Privacy User Profile Litigation centered on concerns that Facebook shared or made user data accessible to app developers, advertisers, and data brokers. Facebook’s disregard for data privacy is exemplified by the 2018 Cambridge Analytica scandal, where the social media monitoring service “gained access” to the data of 50 million users prior to the 2016 election. According to reports from news outlets like the Observer, the Guardian, and the New York Times, the firm then used this information to create targeted ads to sway voters with the intent of supporting President Trump’s campaign. Cambridge Analytica's impact on a national election sparked a debate over user privacy, especially in the era of increasingly widespread social media use. In 2021, the Pew Research Center found that 71% of Americans used some sort of social media. Even after the Cambridge Analytica scandal, Facebook has remained the second most popular form of social media with 69% of Americans using the platform. Given Facebook’s popularity, its lack of privacy protections creates the potential for mass weaponization of user data by third-party actors.
For this reason, there is mounting public concern regarding the absence of regulations surrounding private data. A 2014 survey conducted by Pew revealed that 91% of Americans agree or strongly agree that people have “lost control” over how personal information is collected and used. According to a 2018 study by the Council on Foreign Relations, half of all Americans believe their personal information “is less secure” than it was five years ago. After the Cambridge Analytica scandal, Zuckerberg was called to testify in front of the Senate regarding Facebook’s approach to privacy. Though the testimony signaled increasing government oversight on Facebook, the main headline following his testimony was the shocking incompetence of many of the aging Senators who are tasked with regulating emerging technology. Despite popular concern with social media regulations, the Senate’s questioning of Zuckerberg underscores their inability to build a sufficient legal framework to protect user data.
More than 30 lawsuits were brought against Facebook by users claiming that the site had made personal data available to third parties and had not adequately protected user privacy. These lawsuits, consolidated into In re: Facebook, Inc. Consumer Privacy User Profile Litigation in 2018, includes users harmed by the Cambridge Analytica scandal. On October 10, 2023, District Court Judge Vince Chhabria granted a historic $725 million settlement in the case. Relying in part on precedent from Stasi v. Inmediata Health Grp. Corp. the Court found that Facebook had failed to fulfill its legal responsibility to “handle its users sensitive information with care.” For additional information and documentation on this settlement, please consult In re: Facebook, Inc. Consumer Privacy User Profile Litigation (MDL No. 2843) | United States District Court, Northern District of California.
This settlement serves as foundational precedent that social media companies have an obligation to protect user data and sensitive information. According to plaintiff co-counsel Lesley Weaver, an estimated 23 million people filed claims that they were harmed by Facebook’s practices, resulting in the “largest number of claims ever filed in a class action” in the United States. Given the number of claimants in this class-action lawsuit, the settlement serves as a dramatic illustration of the public’s feelings towards social media and privacy.
Though forced to pay out over $725 million in this highly-scrutinized lawsuit, Meta has not admitted wrongdoing or acknowledged that social media sites are obligated to protect user privacy. Zuckerberg has been criticized for his governance of Facebook, described as “act first, apologize later.” Unfortunately, given the historic lack of social media regulation, Facebook has been consistently lax with user privacy and data protections since its inception. Given Facebook’s power and popularity, its lack of regulation has serious repercussions for data privacy – especially in light of the approaching 2024 election. The government, however, remains woefully behind the times in terms of technological regulation.
In re: Facebook, Inc. Consumer Privacy User Profile Litigation is a step forward in terms of identifying the obligation that social media companies have to protect user privacy. However, the lack of trial and Facebook’s inability to acknowledge its wrongdoing is a reminder that these companies are not sufficiently regulated. Right now, social media companies determine their own obligations to users. As America heads into another hotly-contested election, it is more important than ever that our government takes the adequate legal steps to protect user privacy.
Greta Filor is a senior at Brown University double concentrating in Economics and History. She is a staff writer for the Brown Undergraduate Law Review and can be reached at greta_filor@brown.edu.
Mira Echambadi is a junior at Brown University double concentrating in Applied Mathematics and International and Public Affairs. She is an editor for the Brown Undergraduate Law Review and can be reached at mira_echambadi@brown.edu.