Several hundred thousand Australian users who potentially had their data harvested by way of the Cambridge Analytica scandal could now be compensated following a $50 million settlement reached between the Office of the Australian Commissioner (OAIC) and Meta.

In 2020, the OAIC took Facebook to Federal Court alleging that it repeatedly breached privacy laws by disclosing user information to the “This is Your Digital Life” app.

Masked as a personality quiz, the app on Facebook would collect information not only by the user who took the quiz, but also information about the user’s friends on Facebook. The information was exposed to the risk of disclosure to Cambridge Analytica and other third-parties, and risked being used for political profiling purposes.

The OIAC told the court that the personal data of 311,127 Australian Facebook users was “exposed to the risk of being disclosed” to consulting firm Cambridge Analytica and used for profiling purposes.

 

As a result of the Cambridge Analytica scandal, the company was fined $7.89 billion (US$5 billion) by the US Federal Trade Commission. Although the OAIC’s $50 million payment is far lower than the $1.14 billion (US$725 million) class-action settlement that was reached in the United States in a similar case, the OAIC was keen to highlight the scale of its settlement.

“Today’s settlement represents the largest ever payment dedicated to addressing concerns about the privacy of individuals in Australia,” said Elizabeth Tydd, Australian Information Commissioner.

“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.”

 

Meta has now agreed to set up a payment scheme run by a third-party administrator from early next year.

Those eligible for compensation need to have had a Facebook account between 2 November 2013 and 17 December 2015; been present in Australia for more than 30 days in that period; and either installed the This is Your Digital Life app or were Facebook friends with someone who had.

The OAIC noted that there will be two tiers of payment: one with a base payment if they’ve experienced generalised concern or embarrassment from the matter, and a second category which will involve a higher payment in cases where people demonstrate that they’ve suffered loss or damage.

People will be able to apply for compensation in the second quarter of next year, with any leftover funds from the $50 million settlement to be paid into the Commonwealth Consolidated Revenue Fund. Meta has also paid a contribution to the OAIC’s legal fees.

“We settled on a no admissions basis, 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 Meta spokesperson. “We look forward to continuing to build services Australians love and trust with privacy at the forefront.”