Facebook has been facing lawsuits over its ad practices over the years, and that continues to this day as another user files a class action suit. The lawsuit states that the social networking site's targeted ads are discriminatory towards certain demographics.
Facebook Ads Accused of Discrimination
A 48-year-old Facebook user, Samantha Liapes, filed a lawsuit against the social media giant back in 2020, stating that Facebook was both ageist and sexist when it came to the ads that appeared on her account, particularly the lack of insurance policies.
Liapes claims that "Facebook requires all advertisers to choose the age and gender of its users who will receive ads, and companies offering insurance products routinely tell it to not send their ads to women or older people."
Furthermore, she also said that Facebook's algorithm makes the problem worse by using the required specifications to provide ads to "lookalike audience," which means that the platform is discriminative against women and people older in age.
Liapes says that the damage comes as a missed opportunity for her to sign up for insurance deals that often change and may expire. She indicated which ads were not visible to her, alleging that advertisers excluded her through Audience Selection and Lookalike Audiences.
Facebook responded by saying that the plaintiff's claims did not include all the other ads that she was given and that the tools were neutral. The platform added that she may have seen different versions of the ads she claimed she was excluded from, as per Ars Technica.
Despite the social media platform's defense, a California court ruled last month that Facebook's ad-targeting practices violate the anti-discriminatory law by selecting its targets by age, gender, and other protected categories in the law.
Liapes pointed out that the ad tools violate California's Unruh Civil Rights Act, which aims to "eradicate arbitrary, invidious discrimination in business establishments" by "protecting each person's inherent right to 'full and equal' access to 'all business establishments."
Read Also: Meta to Abide by EU Regulator's Order to Cease Targeted Ads on Facebook, Instagram Users
What Are Targeted Ads?
If you've spent hours on any social media platform that displays ads, there's a very likely chance that you've already encountered targeted ads. It's a way for advertisers to reach customers with specific traits and appeal to their interests, influencing their shopping behavior.
Usually, marketing would include factors like age, gender, and location. Sometimes, even shopping interests and browsing behavior are considered, meaning that browsing data is accessed by advertisers, which brings up privacy concerns.
Despite that, 71% of customers actually prefer targeted ads, according to AdRoll. Personalization in digital marketing can also boost revenue by 15% and encourage repeat purchases with 44% of customers.
The problem remains with this method of advertisement. The optimization of ad displays can lead to unequal opportunities and racial bias, which as the class action suit states, violate anti-discriminatory laws in California.
It can also serve as a way to target young audiences with products that they are not usually allowed to purchase like junk food. This does not only affect children, as adults can also suffer from unhealthy eating habits when they often see advertisements for unhealthy food.
Related: YouTube Might Be Investigated for Showing Targeted Ads to Kids, Again
