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Facebook The Courts

Facebook Can Be Sued Over Biased Ad Algorithm, Says Court (theverge.com) 78

Emma Roth reporting via The Verge: Facebook can be sued over allegations that its advertising algorithm is discriminatory, a California state court of appeals ruled last week. The decision stems from a class action lawsuit filed against Facebook in 2020, which accused the company of not showing insurance ads to women and older people in violation of civil rights laws. The case centers around Samantha Liapes, a 48-year-old woman who turned to Facebook to find an insurance provider. The lawsuit alleges that Facebook's ad delivery system didn't show Liapes ads for insurance due to her age and gender.

In a September 21st ruling, the appeals court reversed a previous decision that said Section 230 (which protects online platforms from legal liability if users post illegal content) shields Facebook from accountability. The appeals court concluded that the case "adequately" alleges that Facebook "knew insurance advertisers intentionally targeted its ads based on users' age and gender" in violation of the Unruh Civil Rights Act. It also found significant similarities between Facebook's ad platform and Roommates.com, a service that exceeded the protections of Section 230 by including dropdown menus with options that allowed for discrimination. "There is little difference with Facebook's ad tools" and their targeting capabilities, the court concluded. "Facebook does not merely proliferate and disseminate content as a publisher ... it creates, shapes, or develops content" with the tools.

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Facebook Can Be Sued Over Biased Ad Algorithm, Says Court

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  • Someone did what? (Score:5, Insightful)

    by what2123 ( 1116571 ) on Monday September 25, 2023 @07:58PM (#63876983)
    I cannot believe this lawsuit was in good faith by the person suing. If there was a "false-flag" for Ads being wanted, ever, this would have to be it. It's doesn't make sense. No sense at all. FB probably cant wait to settle to show the first, admissible in court, proof that adverts online aren't wanted but so desired that folks are willing to siefor their right to be advertised to. *Super Bowl ads being entertainment may be the only exception.
    • by NomDeAlias ( 10449224 ) on Monday September 25, 2023 @09:22PM (#63877133)
      This seems like something she went hunting for with foresight. I just can't wrap my mind around how this scenario happens. Like how do you even go searching for Facebook ads? Are their marketplace classified ads targeted? How does one notice they aren't being passively advertised to? Why would anyone use Facebook to search for insurance? What am I missing?
      • Same questions I had. Doesn't make sense as far as a normal interaction should go. Can't wrap my head around this.
        • I can see this. Some people live in Facebook, not realizing it can be a cesspool of misinformation along with pictures of your grandkids. Using Facebook to hope to get the right kind of ads is like driving down the Interstate hoping the billboards along the way will advertise exactly what you're looking for.

          Targeted advertising is a high risk venture. I once looked for an image of hip waders on Google to post in a work chat as a joke, implying that the project was going to get us deep in unpleasant goo.

          • But how do you search for ads? Are these classified ads that are blocking her? I don't think the classified ads allow that kind of targeting but maybe I'm out of date. Like was the plan to just blindly surf the site until an insurance company serves her an ad? Was she going to insurance quote sites then hoping for deals to pop up in her facebook ads?
            • The government sends me targeted ads for federal jobs whenever I'm unemployed. Everyone who is out of work and hasn't got a job offer should sue facebook and the ad networks.
              • Unemployed isn't a protected class.
                • unemployed wouldn't be the class discriminated against here. I got the targeted ads, and others unemployed potentially didn't. whatever secret selector they are using to differentiate would be one of the possibly protected classes. I was just giving an example that had possible damages (loss of potential future income) as opposed to a missed opportunity to buy something or get an insignificant discount on a consumer item.
        • Avg user wouldn't know how the advertising works. Guessing former or disgruntled current employee is helping out. With the kind of money at stake, why wouldn't they be getting help?
          • Yeah this feels like some sort of "inside" job where she was being guided. Unsure if the inside person is in the ad world or the legal world.
        • Same questions I had. Doesn't make sense as far as a normal interaction should go. Can't wrap my head around this.

          My thought too. What was the process? "I need insurance, I'll wander around FB until I see a appealing ad and click on that?" I mean, if she searched Google for insurance and didn't get any links, that might be an issue, but $5 says Google absolutely does not do that.

          Side note: I used FB for a number of years and one day looked at my wife's browser. That was the first time I realized FB had ads. AdBlock did such a good job of removing them I had no clue they were there. Good times, good times. Now I just do

      • by Hoi Polloi ( 522990 ) on Monday September 25, 2023 @11:37PM (#63877327) Journal
        It screams "A bunch of lawyers, who need to make their boat payments, sat around brainstorming ideas for a law$uit."
      • This seems like something she went hunting for with foresight. I just can't wrap my mind around how this scenario happens. Like how do you even go searching for Facebook ads? Are their marketplace classified ads targeted? How does one notice they aren't being passively advertised to? Why would anyone use Facebook to search for insurance? What am I missing?

        To quote Eddie Murphy, someone is 'looking to get paid'.....

    • by CaptQuark ( 2706165 ) on Tuesday September 26, 2023 @12:10AM (#63877391)

      I interpreted this slightly differently. The appeals court basically said nothing in Section 230 shields Facebook from being sued over this issue. It does not imply that FB is doing anything wrong by this ruling, but it does allow Samantha Liapes to bring the issue to trial.

      Ms Liapes seems to think that by NOT targeting her for a certain group or type of advertisement is discriminatory. This would be similar to me claiming discrimination that I am not receiving ads for feminine hygiene products or newborn diapers. FB is targeting certain individuals based on the statistical likelihood that a particular person might be interested in a certain product. If I liked posts about the artist Bob Ross, then I might expect to see ads about painting supplies. If I have my current occupation as "software engineer" I might expect to see ads about computer technology. NOT sending me ads about horse dressage supplies should not be considered discrimination if I have nothing to indicate I have any interest in the subject.

      • You misunderstand the issue.

        Facebook isn't targeting people based on who it thinks will click. It's the advertisers who are illegally targeting specific protected classes of users and excluding others using the filtering tools that Facebook provides. The lawsuit is over insurance, but this has also come up with housing and other classes of discriminitory conduct.

        The advertisers want to target profitable classes of individuals, and ignore unprofitable classes. Men are cheaper to insure than women, so if they

    • by AmiMoJo ( 196126 )

      We have a similar thing in Europe. Insurers can't consider certain factors like gender when offering insurance. The odd thing here is that women usually pay less for insurance, not more, so it's likely that the ads were trying to rip off younger guys whose premiums are typically higher.

      Facebook has been here before, with job ads that excluded non-white people and women.

  • It's the moment you know the anti-discrimination lows have gone too far.
  • Comment removed (Score:4, Insightful)

    by account_deleted ( 4530225 ) on Monday September 25, 2023 @08:06PM (#63876999)
    Comment removed based on user account deletion
    • Re:Uhh, wha??? (Score:5, Insightful)

      by martin-boundary ( 547041 ) on Monday September 25, 2023 @08:25PM (#63877025)
      I suspect it has to do with being quantifiable damage. If she's missing out on special deals advertised to others but not herself, she can calculate a real dollarvalue on the discrimination. Judges like that because it makes the problem seem less abstract, and it will be less likely to be thrown out.
      • Comment removed based on user account deletion
        • by Anonymous Coward
          It literally tells you in the summary that Facebook lets businesses target ads using the vast troves of information Facebook has about each user. This is nothing to do with retargeting random display ads.
        • Re:Uhh, wha??? (Score:5, Interesting)

          by phantomfive ( 622387 ) on Monday September 25, 2023 @10:27PM (#63877243) Journal

          That's extremely unlikely to have anything to do with her gender and far more likely to come down her having limited or no engagement with insurance companies on their platform

          Then let Facebook prove that in court. We'll see what evidence they provide.

        • You'd have to sue hearing aid companies for targeting people over 60. Advertisers target people under a certain age level because it has been shown that after a certain age you pretty much lock in your bran loyalties. They want to get to new consumers before they get locked in.
        • by AmiMoJo ( 196126 )

          If insurance companies only advertised to people who "engaged" with them, they wouldn't get a lot of clicks. They target people they think need insurance, because they likely own a car or a house... And because statistically, men are more likely to take it out than women.

    • .. Facebook and other algorithmic "platforms" are not neutral publishers in any sense of the word (nor should they qualify for Section 230 immunity, IMHO, but that's a different topic) ..

      It's not clear whether you're saying that Facebook shouldn't qualify for section 230 because they're not neutral, but, if you are, neutrality is not a requirement for section 230 [eff.org].

    • They'd have to sue against the entire idea of advertising in general. All advertising is eventually limited in some way, either by the media, the geographic location, etc. I'm pretty sure ads for hearing aids and adult diapers aren't aimed at my age group.
    • So the insurance providers are using facebook tools to decide who gets their ads for insurance.
      As much as I agree about the section 230 immunity how is this a case against facebook. The insurance providers set the criteria of age and sex that they wanted so they should be the ones sued.
      This is like sueing whoever shows football on TV because it watched by more men, when it would be the companies who looked at the demographics and picked that show to advertise on.
    • One turns to facebook as the worm wriggling on the end of a suing lawyer's hook. No point in suing if you only collect one third of a tiny payout.

  • by thesjaakspoiler ( 4782965 ) on Monday September 25, 2023 @08:09PM (#63877001)

    Facebook must have concluded I'm a hopeless bloke.

    • Don't worry, after you sue Facebook for millions for failing to show you the dating ads you want I'm sure your dating luck will improve. Just make sure to get in the quickly with your lawsuit because soon everyone will be suing them for not showing them ads.
  • If I'm running an ad campaign for men's razors you can bet your ass I want to only be targeting men. Are marketers required to waste money and throw ads out blindly?
    • yes, because you don't want to be a big meanie.

    • This is 2023.

      Women have beards and penises, men get pregnant and breast feed.

      Your ad campaign is transphobic. You are cancelled.

      • I'm selling whetstones for grinding axes. Looks like I've found my demographic!

        • Why do you hate trans people? Did a trans say hi to you on a bus or something and trigger you?

          • Are you on drugs? You seem confused.

            Anyway "dumbass" isn't a protected category so one can target ads freely!

            • Oh my little troll stalker friend, you are saying nothing, very loudly, as usual.

              Please review our thread. Then take your meds and review it again.

              I am not at all confused. You are just wrong, as usual. If you have nothing to say other than random fact free personal attack, don't bother. If you want to present an actual fact or even express an on topic opinion I'll be waiting.

              But "axes grinding demographic", "confused", "dumbass", "on drugs" presents no point or argument. It's just noise.

              Do better.

              • Oh my little troll stalker friend,

                Oh it's you! I thought the post had a familiar ring of misplaced grievance about it, but I have little head for names. Funny you turn out to be the same person.

                • And again you come back to add nothing. Your standard MO.

                  Here's my original post here:

                  > This is 2023.
                  >
                  > Women have beards and penises, men get pregnant and breast feed.
                  >
                  > Your ad campaign is transphobic. You are cancelled.

                  Which part is incorrect? Please be specific.

                  • Which part is incorrect?

                    I didn't say it was incorrect, just that you had an axe to grind. But since you really want to know:

                    You are cancelled.

                    There you go. No matter how broad your interpretations, the OP has clearly not been cancelled. But before you plead hyperbole there are advertising campaigns right now in the real world targeting men for razors from the likes of Gillette (and I'm sure others, I didn't bother to check) and Gillette has manifestly not been "cancelled".

                    Targeting razor advertising to men

                    • It's called a joke. Get over your big bad self. My god, you wasted how many posts on a mild snarky bit?

                      Jfc, dude, you need therapy. So easily triggered. Now I just feel bad for you.

                    • It's called a joke.

                      Ah the last refuge of the desperate! I love your strategy though. I'm not axe grinding, see, tell me where I'm wrong. Well OK I was wrong, but it was a JOKE. Come on Dougal, lighten up!

                      Cool yes, it was a joke, one told to grind your particular axe. The two are not mutually exclusive.

    • Moreover, advertisers have been targeting based on age, gender and income for over 50 years. Those are the big three ways that advertisers target.
      • I can see a difference between targeting places where demographics are likely but not enforced being different from an outright block but yeah marketing is all about demographic targeting and stereotypes.
        • Yeah. Any sort of legal analysis of why it would be ok in one case but not another is beyond my knowledge/ability.
      • The problem here is that Facebook et al have an overt discrimination filter. Whereas a television ad or billboard or whatever may be engineered to appeal to a certain demographic, it is broadcast indiscriminately based on geographic location.

    • If I'm running an ad campaign for men's razors you can bet your ass I want to only be targeting men. Are marketers required to waste money and throw ads out blindly?

      Then you're a fool. Change your handles to pink plastic and you'll sell more razors to women than you ever would to men. Some percent of men have beards, and consequently don't use razors. Zero percent of women have beads, AND they shave their chins, legs, arms, back, stomach, breasts, ribs, fingers, toes, eyebrows, basically, everything below the ears is fair game.... not marketing razors to women is a terrible mistake.

      If you can come up with a competitor to Nair that doesn't burn, you'll be the rich

  • How did they know they weren't being advertised to? I'm not seeing any ads for horse trailers so clearly I'm being biased against. Also, who the hell is shopping for insurance based on facebook ads?
  • Wrong approach. Totally wrong approach. You should sue for being targeted FOR the wrong reasons, not AGAINST. Sue them for showing you dating ads and pretend they accuse you of being unable to find a mate. Sue them for showing you only dating ads for women and accuse them of being homophobic. Sue them for showing you ads for male grooming products and accuse them of being transphobic.

    That way, the only way for them to be safe is to never show any ads to anyone.

  • What about TV ads that target certain demographics? Why is FB different from them? I think the U.S. legal system is a bit over interpretting this. Look at ads for viagra that only show during men's shows, heck what about channels like BET, that completely cater to one minority? I think this case could open a huge can of worms that could end up including all kinds of entertainment and ads.
    • What about TV ads that target certain demographics?

      What about them? If you tune into the channel, you'll get the ad regardless of any personal characteristics.

      There's a big difference between making a passive decision based on who might be watching and making an active decision based on characteristics of you in particular.

      • Umm...no. Those characteristics are used by ALL advertising. That's why they have channels like BET, so they can target specific ads to a certain demographic. Have you been asked personal info as part of registering a device? like age group/etc? Boomers are most of what watch regular TV, guesss what ads dominate regular TV?

        Besides, you don't have to put actual info into FB, they don't verify your age. What about life insurance and car insurance that descriminate against age? Medicare is designed so health

        • That's why they have channels like BET, so they can target specific ads to a certain demographic.

          Nonetheless if I tune into BET as a pasty white guy, I get the same ads. They are based on assumed characteristics of the audience not, as I already said, the characteristics of you in particular.

          Besides, you don't have to put actual info into FB

          This is about antidiscrimination laws, I don't think "but you can simply lie to the person discriminating" is a valid defense for discrimination.

          No, this is overreach

          Pr

  • I hope FB wins this one and gets some damages from the woman.

    I have done FB ads for my romance book. You get to choose a demographics, which is not guaranteed, but strived for. I always choose women between 30-70 (or something like that). I mean why would I want to advertise my historical romance novel to 20-something year old males? If FB delivers what I want, it's not FB's fault! It's not even my fault! But to explain where this is coming from, from TFS:

    The case centers around Samantha Liapes, a 48-year-old woman who turned to Facebook to find an insurance provider. The lawsuit alleges that Facebook's ad delivery system didn't show Liapes ads for insurance due to her age and gender.

    So, discrimination based on sex and age is illegal. We all get that. But targeting people who would bring you the biggest bang for buck (younger people) as an insurance company is completely within the law. It's not like they rejected her based on her sex/age, because THAT may be discrimination.

  • Since when would you look for insurance, or any other product, on Facebook? It isn't a search engine. The premise of this case doesn't make sense.
  • Simps white-knighting corporations on Slashdot. Wow.
  • âoeThe case centers around Samantha Liapes, a 48-year-old woman who turned to Facebook to find an insurance provider.â Da fuq?!
  • I'm assuming that the insurance in question was life insurance. Life insurance (and other types of insurance) are allowed to use age and sex to set prices and availability of their product. Why wouldn't they be allowed to skew advertising to the groups that they actually sell a competitive product to?

    And to a larger extent, advertising has long chosen venues that allow them to reach specific groups. Ever notice that there's a lot of Medicare-related commercials on Fox News, but not on Disney Channel?

  • Who is boneheaded enough to search for insurance on Facebook?

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