Facebook, US Settle Lawsuit Over Discriminatory Housing Advertising System, Meta Denied Charges

Facebook owner Meta denied wrongdoing, but agreed to pay a $115,054 (nearly Rs. 89 lakh) civil penalty.

Facebook, US Settle Lawsuit Over Discriminatory Housing Advertising System, Meta Denied Charges

Facebook agreed to stop using an algorithmic tool known as 'Special Ad Audience'

Highlights
  • US DoJ said Meta encouraged advertisers to target users illegally
  • Complaints over ads-based discrimination have dogged Meta since 2016
  • The settlement reached on Tuesday is subject to review by a judge
Advertisement

The United States and Facebook owner Meta Platforms have settled a lawsuit over a housing advertising system that illegally discriminated against users based on race and other characteristics, the Department of Justice said on Tuesday.

In a lawsuit filed in federal court in Manhattan, the Department of Justice (DOJ) said Meta encouraged advertisers to target users based on features like race, religion, and sex, in violation of the Federal Housing Act. That law prohibits discrimination in housing based on such characteristics.

Meta denied wrongdoing, but agreed to pay a $115,054 (nearly Rs. 89 lakh) civil penalty, the highest allowed under the law. Complaints over ads-based discrimination have dogged the company since 2016, and the company has reached settlements with Washington state and rights groups over similar allegations.

As part of the deal, the company agreed to stop using an algorithmic tool known as 'Special Ad Audience' and design a new housing advertising tool by the end of the year.

"Because of this ground-breaking lawsuit, Meta will — for the first time — change its ad delivery system to address algorithmic discrimination," Damian Williams, the US Attorney for Manhattan, said in a statement.

Meta said it would also use the new system for advertisements related to jobs and credit.

"Discrimination in housing, employment and credit is a deep-rooted problem with a long history in the US, and we are committed to broadening opportunities for marginalized communities in these spaces and others," the company said in a statement.

The case stems from a 2019 civil charge filed by the US Department of Housing and Urban Development.

The DOJ said Facebook made some changes as part of its 2019 settlement with rights groups, but said that deal did not address the delivery of ads through machine-learning algorithms.

The settlement reached on Tuesday is subject to review by a judge.

© Thomson Reuters 2022

 


We discuss the best of Google I/O 2022 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Roxe Holdings Said to Go Public in $3.65 Billion Merger Deal With Goldenstone Acquisition
DDA Approves Proposal to Set Up Eco Park for E-Waste Management in Narela
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »