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The encyclopedia · Advertising & PR · Marketing decision · 2020

Facebook promised control over who sees your data — Canada fined the promise $9M

May 2020: Facebook paid Canada $9.5M — from 2012 to 2018 its privacy tools promised control it did not deliver, and friends' data kept flowing to developers.

Facebook Inc. · 2020-05

What happened

From August 2012 to June 2018, Facebook told Canadians on Facebook and Messenger that they controlled who could see and access their personal information — through the Privacy Settings page, the About page and the audience selector. The Competition Bureau concluded the claim was false or misleading: personal information, including posted content and Messenger exchanges, was shared with some third-party developers in ways those controls did not reflect.

One claim had an expiry date Facebook did not honour. It said third-party developers could no longer access a user's friends' personal information after 30 April 2015; the Bureau found the practice continued with some developers into 2018. On 19 May 2020 Facebook signed a consent agreement: a $9 million penalty plus $500,000 for the Bureau's costs, and a bar on false or misleading representations about how personal information is disclosed.

The case made privacy claims an advertising matter in Canada: what a company says about its data practices is a claim to consumers, enforceable like any other. Facebook settled while disputing the conclusions. Commissioner Matthew Boswell's line: claims about privacy are no exception to the rule that Canadians deserve truth from businesses.

Why it happened

  • The privacy controls were marketed as gates; for third-party developers they were not gates at all.
  • The friends'-data promise carried a date — 30 April 2015 — that the practice quietly outlived by years.
  • Trust in the settings was the product's selling point; the Bureau priced the gap between promise and practice.
What it cost$9M penalty + $500K costscostly

The lesson

Privacy statements are marketing claims: 'you control who sees your data' is enforceable advertising, and a control that does not hold for third parties is a misleading one. The promise is the claim.

Aftermath

Facebook disputed the Bureau's conclusions but settled to resolve the matter, and is barred from misleading representations about personal-information disclosure. The case is cited as the moment Canada's Competition Bureau became a de facto privacy watchdog.

Sources

spotted an error? The club wants to know.

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