Meta reaches privacy settlement, agreeing to pay $37.5 million in compensation

There are new reports Meta, the parent company of Facebook, Instagram and WhatsApp, has reached a $37.5 million privacy settlement.

Filed earlier this week in San Francisco’s Federal Court, the settlement is in response to a class action accusing Facebook of violating both California state law and its own privacy policy.

Meta allegedly collected consumer data despite users shutting off location services on their mobile devices. 

Whilst agreeing to pay, Meta continues to deny any wrongdoing as the deal awaits a judge’s final approval.

In 2018, then-Facebook CEO Mark Zuckerberg admitted that location data was used to help advertisers reach their target audiences.

Zuckerberg said the data was useful to assist advertisers in serving more targeted promotions to users within a specific geographic area.

While some people find this feature helpful, others have complained that the move is highly invasive.  

Much has changed in the world of user data collection since this lawsuit was first lodged. Apple now allows consumers to turn off the ability for apps, like Facebook, to track activity. While Facebook is also allowing users to clear their history on the app.

Of course, people who have switched off these functions have impeded advertisers’ capability in accurately measuring ad performance.

It remains unclear if Meta has reached this settlement in a bid to make this case to disappear or if it is acknowledgement of former poor practices that have now been rectified.