Per Bloomberg news, Facebook Inc. (FB – Analyst Report) has crushed a bid for a class action lawsuit that accused the social media company of “automatically and surreptitiously” giving advertisers access to personal information of its users.
Users claimed that Facebook gave away details like usage of website to advertisers when they clicked on the ads, undermining Facebook’s own “explicit privacy promises.”
The judge cited that plaintiffs “didn’t have enough in common to pursue a class action.” The lawsuit was first dismissed in 2011 by San Jose Court judge Ronald M. Whyte, only to be overturned by an Appeals Court later on.
The report further adds that in June this year, Whyte had dismissed Facebook’s petition to reject the case as he ruled that the last plaintiff might be able to prove that “she didn’t receive the confidentiality Facebook promised.” However, back then, Whyte had also highlighted that the lawsuit had too many individual questions to continue as a class action lawsuit.
Facebook has been under constant scrutiny owing to the huge amount of personal data it hosts. This huge database is its primary asset for attracting advertisers. Advertising is the mainstay of Facebook’s revenues and comprises nearly 95% of the company’s revenues. As a result, the company has been criticized for allegedly selling this personal data to advertisers in order to boost its top line.
While Facebook is accused of leaking data to advertisers on the one hand, it is also accused by regulatory bodies in various countries for not divulging information on sensitive matters. Facebook continues to be at loggerheads with Brazilian law enforcement agencies for not disclosing information pertaining to those accused in drug trafficking rackets.
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Source: www.zacks.com
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