UPDATED: Warning to Australian companies following Facebook data scandal

Facebook confirmed that more than 310,000 Australians have have had their social data improperly shared with Cambridge Analytica

151027-facebook-headquarters-8-100624948-orig.jpg
151027-facebook-headquarters-8-100624948-orig.jpg

More than 310,000 Australians may have had their data improperly shared with Cambridge Analytica, according to a Facebook update overnight.

It has now been revealed Facebook information about up to 87 million people, mostly in the US, has been illegitimately collected, up from the 50 million people originally published.

As the reputational and financial risk of being revealed as an untrustworthy data host continues to escalate, and worldwide attention focuses on Facebook and illegitimate data collection conducted by Cambridge Analytica off the back of the platform, the Association of Market and Social Research Organisations (AMSRO) is sounding a warning to Australian companies not to think themselves exempt from the issue.

The warning comes as Facebook’s chief executive, Mark Zuckerberg, said the social network had no immediate plans to apply Europe’s GDPR legislation around data privacy in its entirety to the rest of the world. Zuckerberg reportedly told Reuters Facebook already complies with many parts of the law ahead of its implementation in May and the company wanted to extend privacy guarantees worldwide in spirit, but would make exceptions.

Global criticism of Facebook continues to ramp up after the social media giant confirmed more than 87 million user profiles were leaked to controversial political data analytics company, Cambridge Analytica. The news has raised criticism across the globe around Facebook’s consumer data practices, and the concerning influence hypertargeting can have on the outcome of political elections and referendums.

The news served as a hefty warning to marketers on the importance of transparency with consumers about how their information is used, and more stringent governance practices around access, and usage.

“The spotlight is now squarely on how organisations manage and use personal data - from the smallest firms up to the very largest, client organisations and all those who deal in and store data,” said AMSRO president, Craig Young.

“The financial implications for a breach are significant and the reputational damage is potentially catastrophic. The liability that goes with data management should be top of mind for all leaders of organisations.”

Since news of the data leakage broke, more than $US100 billion has been wiped from Facebook’s value. The AMSRO also believes it is incumbent on the market and social research industry in Australia to continue to provide the highest level of protection to companies using research services, and in turn, to consumers.

Facebook has banned data analytics provider, Cambridge Analytica, and its parent company, Strategic Communication Laboratories (SCL), from the platform and has launched an investigation into both after coming under heavy fire for one of the biggest data leaks in the social media giant’s history.

Overnight, Facebook announced that Facebook users will receive a link at the top of the news feeds to see what apps they use and what information they have shared with those apps, so they delete apps they no longer want.

Facebook is also restricting access apps can receive about users' events, as well as member lists, attendance, and content.  Third-party apps using the Groups API will need approval from Facebook and an admin to access a group and apps will no longer be able to access the member list of a group. The company is also removing the option to search for users by entering a phone number or an email address.

Facebook will also need to approve all apps that request access to information such as check-ins, likes, photos, posts, videos, events and groups. 

It is also reportedly developing a tool for advertisers to verify they have gained consent to use email addresses uploaded via Facebook’s Custom Audiences. Custom Audiences allows advertisers to target users by uploading lists of emails, phone numbers and other data and cross-referencing it against user profiles.

Facebook made changes to its ad practices following the data scandal, and also stripped back the permissions it grants third-party app developers operating on its platform. 

Facebook reportedly disabled a form of advertising targeting called Partner Categories, which allowed third-party data aggregators to provide clients with offline data to inform ad targeting.  It also now allows the removal third-party apps, and all posts those apps may have published on user’s behalf.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

 

 

 

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Hi,When online retailers establish their multi channel strategy and they are using or will to use live chatbot to support their customers...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in