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The Australian Information Commissioner has reached a landmark settlement with Meta today (17 December) after as many as 300,000 users had their data potentially harvested as part of a Cambridge Analytica scandal.
In 2018, it was revealed by The Observer that British data analytics firm Cambridge Analytica had collected the data of millions of Facebook users without their consent through an app called “This Is Your Digital Life”.
The app quizzed users, collecting data on them. The data was then used to assist in the 2016 US elections of President Donald Trump and Senator Ted Cruz and was believed to have affected the UK’s Brexit referendum.
While only 53 Australians downloaded the This Is Your Digital Life app, the app also harvested the data of the user’s friends, meaning an estimated 311,127 Australian users had their data harvested.
The US reached a US$725 million settlement with Meta two years ago; however, until now, Australia remained in a four-year legal battle with the social media giant.
Today, however, the Office of the Australian Information Commissioner has announced that it had reached a settlement with Meta for A$50 million.
“Today’s settlement represents the largest-ever payment dedicated to addressing concerns about the privacy of individuals in Australia,” Australian information commissioner Elizabeth Tydd said.
“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.”
The settlement will involve a A$50 million payment program as part of an enforceable undertaking, which will be open to those who held a Facebook account between 2 November 2013 and 17 December 2015, were present in Australia for over 30 days during that period and had either downloaded This Is Your Digital Life or had a friend who did.
Speaking with media, Meta did not admit fault but said reaching a settlement was in the best interests of its users and shareholders.
“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,” said a company spokesperson.
“We look forward to continuing to build services Australians love and trust with privacy at the forefront.”
Compensation will be awarded in two tiers. For the first tier, those who suffered “generalised concern or embarrassment” will receive a general payment, while the second tier will award those who suffered loss or damage a specific amount.
“The payment scheme is a significant amount that demonstrates that all entities operating in Australia must be transparent and accountable in the way they handle personal information, in accordance with their obligations under Australian privacy law, and give users reasonable choice and control about how their personal information is used,” Tydd said.
“This also applies to global corporations that operate here. Australians need assurance that whenever they provide their personal information to an organisation, they are protected by the Privacy Act wherever that information goes.”
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