Facebook NewsFeed Manipulation Prompts FTC Complaint, Investigation Possible
The Electronic Privacy Information Center (EPIC) filed formal legal documents with the Federal Trade Commission (FTC), alleging that Facebook engaged in deceptive trade practices and violated a 2012 Consent Order entered into with the FTC. The formal complaint asks the agency to begin an investigation, and comes in response to the news that Facebook manipulated the NewsFeeds of 689,003 users.
EPIC has previously filed complaints against Facebook, and was largely successful in their efforts. The FTC's 2012 settlement with Facebook followed from a Complaint filed by EPIC and a coalition of privacy and civil liberties organization in December 2009 and a Supplemental Complaint filed by EPIC in February 2010. In that matter, the FTC settled charges that Facebook 'deceived consumers by telling them they could keep their information on Facebook private, and then repeatedly allowing it to be shared and made public.'
The complaint sets forth three allegations:
Count I: Deceptive Failure to Inform Users that their Data Would Be Shared With Third-Party Researchers
As described above, Facebook represented to consumers that the company shared user data with users' 'friends' on the website, advertisers, and developers.
In fact, as described above, Facebook shared user data with third-party researchers at multiple universities.
Users could not reasonably have known that their data might be shared with third party behavioral science researchers.
As described above, Facebook users were materially concerned with this data sharing practice.
Therefore, Facebook's failure to adequately disclose that it shared consumer data with third-party researchers constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).
Count II: Unfair Failure to Inform Users That They Were Subject to Behavioral Testing Count III: Violation of the 2012 Consent Order
As described above, Facebook represented to users that the company only shared user data for advertising purposes or in conjunction with [thing].
In fact, as described above, Facebook subjected certain users to ongoing behavioral testing by collecting user data and feeding it into a separate algorithm.
Users could not reasonably have guessed that use of their Facebook account might subject them to behavioral testing.
As described above, users were materially concerned with this change in Facebook's data use.
Therefore, Facebook's failure to adequately disclose that it used consumer data to manipulate users' NewsFeeds and record users' reactions constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).
As described above, Facebook misrepresented its data collection practices, in contravention of Count I of the Consent Order.
As described above, Facebook misrepresented the extent to which it made covered information accessible to third parties, also in contravention of Count I of the Consent Order.
Therefore, Facebook has violated Count I of its 2012 Consent Order with the FTC and is subject to FTC enforcement in Federal district court.
EPIC's complaint asks the FTC to initiate an investigation of Facebook's manipulation of user NewsFeeds and the transfer of user data to third parties. The group is also asking that the FTC force Facebook to make public the algorithm that produces the NewsFeed.
The full legal complaint is included below.
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