Meta, the parent company of Facebook, has reached a landmark agreement to pay $50 million as part of a settlement with the Australian Information Commissioner, addressing privacy violations stemming from the infamous Cambridge Analytica scandal. This significant cash boost will be available to Australian Facebook users whose data was impacted by the scandal, marking it as the largest payment dedicated to resolving privacy concerns with respect to individuals down under.
According to Australian Information Commissioner Elizabeth Tydd, this settlement not only offers financial relief but also offers potentially affected Australians the opportunity to seek redress through Meta's payment program. "It is the largest ever payment dedicated to addressing the privacy concerns of Aussie individuals," Tydd stated. This multi-million-dollar deal arises from nearly one year of mediation talks with Meta, initiated after the Commissioner filed proceedings against the tech giant back in March 2020.
The Commissioner lodged proceedings against Meta alleging breaches of the 1988 Privacy Act. This was due to the unauthorized sharing of the personal information of Australian Facebook users with the app ‘This Is Your Digital Life’, developed by Cambridge University professor Aleksandr Kogan. The app was presented to users under the guise of entertaining content, but it was later revealed Kogan shared the data with the data analytics firm Cambridge Analytica, which then exploited this user information for political profiling.
Although only 53 Australians downloaded the application, the Australian Information Commissioner estimates around 311,000 additional Facebook users were indirectly affected through their friendships with those who installed the app. During the height of the scandal, data from approximately 87 million users globally was improperly accessed, demonstrating the far-reaching consequences of privacy breaches on social media platforms.
Eligible Australian users will be those who held Facebook accounts between November 2, 2013, and December 17, 2015, and who were present in Australia for at least 30 days during this period. They must either have installed the ‘This Is Your Digital Life’ app or have been friends with someone who did. Payments from the settlement will categorically be split among two tiers: the first tier allows individuals to apply for a base payment for general concerns, and the second is set for those who can demonstrate specific losses incurred due to the data breach, likely receiving higher compensation.
Meta stated it settled on the case on what it called a “no admissions basis,” meaning it does not accept liability or wrongdoing for the allegations made against it. A spokesperson for Meta emphasized, "We settled on a no admissions basis, as it is in the best interest of our community and shareholders to close this chapter on allegations related to past practices no longer relevant to how Meta’s products or systems work today." They note significant changes have been made since the incidents, underlining their commitment to ensuring user privacy is respected moving forward.
The Australian Information Commissioner underscored the importance of protecting personal information, stating, "Australians need assurance whenever they provide their personal information, they are protected by the Privacy Act wherever it goes." The OAIC noted Meta will be required to notify those impacted by the breach as well.
With the settlement approved, applications for the payment scheme are expected to begin opening up by the second quarter of 2025, creating avenues for many affected Australians to seek compensation for what they endured as victims of this high-profile data breach. The overall significance of such settlements is reiterated by Tydd, stating, "This demonstrates all entities operating here must handle personal information transparently. This also applies to global corporations operating within Australia."
Looking to the immediate future, as Australians who experienced discomfort or violations gain access to compensation, there’s both hope for justice and assurance of improved handling of their privacy. Meta’s approach may impact overall trust with the community, as it navigates forward intending to rebuild confidence among its Australian users, emphasizing privacy at the forefront of its services.
