Potentially hundreds of thousands of people whose Facebook data was collected as part of the Cambridge Analytica scandal could be compensated, after Meta agreed to a A$50 million settlement with Australia’s privacy regulator.
The settlement, announced by the Office of the Australian Information Commissioner (OAIC) on Tuesday, follows a four-year legal battle against Meta over the scandal, and two years since a $725 million legal settlement was reached. in the United States.
Australian Information Commissioner Elizabeth Tydd said the new deal represented “the largest payment ever dedicated to addressing the privacy concerns of people in Australia.”
“It represents a substantial resolution of the privacy concerns raised by the Cambridge Analytica matter; provides potentially affected Australians with the opportunity to seek redress through the Meta payments program; and puts an end to a long judicial process,” Tydd said.
In 2018, the Observer revealed that Cambridge Analytica, a data analytics company, had collected millions of Facebook profiles to help Donald Trump’s campaign and the pro-Brexit campaign in the United Kingdom.
Under the guise of a personality quiz, the Facebook app would collect information not only about the user who took the quiz, but also information about their Facebook friends.
In Australia, the OAIC launched legal action in 2020, alleging breach of Australian users’ privacy, and court documents estimated that only 53 people in Australia installed the trial app, called This is Your Digital Life.
But the application also obtained the data of the friends of those who downloaded it, with an estimated 311,127 affected.
Under the enforceable commitment agreed to by Meta, the social media platform will need to establish a payment plan managed by a third-party administrator starting early next year.
To be eligible for compensation it will be necessary to have had a Facebook account between November 2, 2013 and December 17, 2015; been present in Australia for more than 30 days in that period; and installed the This is Your Digital Life app or were Facebook friends with someone who had it.
There will be two levels of payment: one with a base payment if they have experienced widespread worry or embarrassment about the matter, and a second category where people will need to prove they have suffered loss or damage.
The OAIC estimates that people will be able to apply for compensation in the second quarter of 2025, with funds left over from the $50 million paid into the Commonwealth’s consolidated revenue fund. Meta has also paid a contribution towards the OAIC’s legal fees.
A Meta spokesman said the agreement was intended to close a chapter on the allegations.
“We agree that it is in the best interest of our community and shareholders to close this chapter on allegations related to past practices that are no longer relevant to the current operation of Meta’s products or systems,” the spokesperson said. “We look forward to continuing to build services that Australians love and trust, with privacy at the forefront.”
Much of the delay in the legal case in Australia came after Meta attempted to argue that it was not carrying on business in Australia, which would have limited the OAIC’s ability to regulate the company in Australia. the argument was rejected by the high court.