Meta settles data case
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Meta Platforms has reached a $50 million settlement over the Cambridge Analytica scandal.
The agreement with the Australian Information Commissioner includes a payment program for Australian Facebook users affected by the misuse of their data and concludes Federal Court proceedings initiated in 2020.
The Commissioner alleged that Meta’s systems allowed personal information from Australian Facebook users to be accessed by the app “This is Your Digital Life”.
This information was potentially shared with Cambridge Analytica and other third parties, sparking concerns it could have been exploited for political profiling.
Although Meta denied liability, it has agreed to resolve the matter through this settlement, bringing an end to years of legal wrangling.
Australian Information Commissioner Elizabeth Tydd described the settlement as “the largest ever payment dedicated to addressing concerns about the privacy of individuals in Australia”.
She noted the agreement provided affected users with a chance to seek redress while reinforcing the importance of transparency and accountability for all companies operating in Australia.
The settlement also highlights Meta’s obligations under the Privacy Act 1988 (Cth), which aims to ensure Australians have control over how their personal data is used and shared.
Under the payment program, individuals who held a Facebook account between November 2013 and December 2015, spent at least 30 days in Australia during that time, and either installed the app or were friends with someone who did, can apply for compensation.
Claimants may seek a base payment for general concern or embarrassment, or demonstrate specific losses for a higher payout.
An independent third-party administrator, to be appointed early next year, will oversee the process, which is expected to open for applications by mid-2025.
Meta has committed to publicising the program widely, ensuring potential claimants are informed.
Any unclaimed funds will be directed to the Commonwealth Consolidated Revenue Fund, ensuring no residual amounts remain with the company.
This settlement follows Meta’s US$725 million agreement in the United States for similar allegations, underscoring the company’s global efforts to address past privacy concerns.
In Australia, the agreement reflects broader legal reforms, including significant increases in penalties for serious privacy breaches, now reaching up to $50 million or a percentage of a company’s turnover.
