Meta Agrees To AU$50M Settlement For Facebook Data Breach: Who Can Claim Compensation?
Meta has agreed to a AU$50 million settlement with Australia's privacy regulator following the scandal in which hundreds of thousands of Australians had their Facebook data harvested as part of the Cambridge Analytica controversy.
The settlement, announced by the Office of the Australian Information Commissioner (OAIC) on Tuesday, concluded a four-year legal battle against Meta, two years after the company reached a US$725 million settlement in the United States, reported The Guardian.
Elizabeth Tydd, Australia's Information Commissioner, called the settlement the largest payment ever made to address privacy concerns for individuals in Australia.
"It represents a substantive resolution of privacy concerns raised by the Cambridge Analytica matter; gives potentially affected Australians an opportunity to seek redress through Meta's payment program; and brings to an end a lengthy court process," she said.
The Cambridge Analytica scandal
The controversy dates back to 2018 when the Observer revealed that Cambridge Analytica, a data analysis firm, had harvested millions of Facebook profiles to support Donald Trump's election campaign and the pro-Brexit movement in the U.K. The app behind the data harvesting, disguised as a personality quiz, not only collected personal information from users who took the quiz but also from their friends on Facebook.
The OAIC launched legal action in 2020, accusing Meta of breaching the privacy of Australian users. While only 53 people in Australia installed the app "This is Your Digital Life," it also gathered data from their friends, affecting nearly 311,127 Australians.
Who can claim compensation?
The compensation scheme will be available to individuals who meet the following criteria:
- Held a Facebook account between Nov. 2, 2013, and Dec. 17, 2015.
- Lived in Australia for more than 30 days during that period.
- Installed the app, "This is Your Digital Life," or were Facebook friends with someone who did.
The payment will be structured in two tiers. The first tier offers a base payment for those who experienced general concern or embarrassment due to the breach. The second tier will provide higher payments for those who can show they suffered loss or damage from the incident.
According to the OAIC, individuals will be able to apply for compensation in the second quarter of 2025. Any unclaimed funds from the A$50 million settlement will be directed to the Commonwealth consolidated revenue fund. Meta has also contributed to the OAIC's legal fees.
A spokesperson for Meta described the settlement as closing a chapter on the allegations.
"We settled as it is in the best interest of our community and shareholders that we close this chapter on allegations that relate to past practices no longer relevant to how Meta's products or systems work today," the spokesperson said. "We look forward to continuing to build services Australians love and trust with privacy at the forefront."
© Copyright 2024 IBTimes AU. All rights reserved.