Facebook Class Action Alleges User Data Collection Violates FCRA

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Facebook faces a new class action lawsuit alleging the social media company committed violations under the Fair Credit Reporting Act.

On April 10, 2018, Facebook’s CEO Mark Zuckerberg engaged in a hearing in front of the United States Senate.

During the hearing, senators attempted to understand and define what information Facebook was collecting and the level of transparency Facebook provides.

Plaintiff Sanford Buckles alleges that, based on information discovered at the Senate hearing, Facebook can be defined as a consumer reporting agency under the Fair Credit Reporting Act.

The Fair Credit Reporting Act defines a consumer reporting agency as “any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.”

The Facebook class action lawsuit argues that Facebook is a consumer reporting agency because it “regularly assembles and transmits information regarding consumers to third party advertisers, data brokers, researchers, and other third-parties, oftentimes for a fee.”

Facebook allegedly reports to its advertising partners about the success of their advertising. The company also allegedly reports to app developers which have access to user data via Facebook.

In order to furnish a consumer report, a consumer reporting agency must disclose a full and detailed report on what information is gathered, used, and retained. The Facebook class action argues that Facebook does not provide enough information to consumers about what information they store.

“Without full and complete disclosures of the information Facebook acquires and compiles, a consumer is unable to adequately assess whether to adjust their privacy settings to opt out of marketing campaigns, or determine whether false information is being reported about them such that they can correct the information,” the Facebook class action lawsuit states.

The plaintiff argues that consumers cannot investigate the information in their consumer file, determine which third parties have their information, or why third parties have their information.

Buckles says he experienced these alleged deficiencies first hand when he attempted to gather information on his personal file and was faced with repeated problems. “Facebook’s failures were willful, as Facebook had complete control over the information and as a matter of policy would not clearly, completely or accurately disclose to Plaintiff the information in his consumer file at Facebook,” the Facebook FCRA class action lawsuit states.

Buckles seeks to represent a Class of people who requested and obtained their Facebook consumer disclosure wherein Facebook failed to (1) provide all information in the consumers file, (2) a clear and accurate list of entities who used Facebook’s data, and (3) a complete list of inquires from users including dates and purposes.

The Facebook class action lawsuit seeks compensatory damages, statutory damages, punitive damages, court costs, and attorneys’ fees.

Buckles is represented by Abbas Kazerounian and Matthew M. Loker of Kazerouni Law Group APC; Joshua B. Swigart of Hyde & Swigart; David H. Krieger of Haines & Krieger LLC; Matthew I. Knepper and Miles N. Clark of Knepper & Clark LLC.

The Facebook FCRA Class Action Lawsuit is Buckles v. Facebook Inc., Case No. 3:18-cv-02189, in the U.S. District Court for the Northern District of California.