Facebook fined for data scandal

​The UK Information Commissioner’s Office (ICO) has fined Facebook £500,000

The UK Information Commissioner’s Office (ICO) has fined Facebook £500,000 for ‘serious breaches of data protection law’, the maximum penalty it can impose under previous legislation. 

The fine related to the Cambridge Analytica scandal, when more than 310,000 Australians may have had their data improperly shared with Cambridge Analytica, according to a Facebook update in April. Facebook collected the information of up to 87 million people, mostly in the US, illegitimately, up from the 50 million people originally published. This includes up to one million UK residents, according to the ICO. 

According to a statement, ‘The ICO’s investigation found that between 2007 and 2014, Facebook processed the personal information of users unfairly by allowing application developers access to their information without sufficiently clear and informed consent, and allowing access even if users had not downloaded the app, but were simply ‘friends’ with people who had.’ 

‘Facebook also failed to keep the personal information secure because it failed to make suitable checks on apps and developers using its platform. These failings meant one developer, Dr Aleksandr Kogan and his company GSR, harvested the Facebook data of up to 87 million people worldwide, without their knowledge. A subset of this data was later shared with other organisations, including SCL Group, the parent company of Cambridge Analytica who were involved in political campaigning in the US.’

The ICO went on to say, ‘Even after the misuse of the data was discovered in December 2015, Facebook did not do enough to ensure those who continued to hold it had taken adequate and timely remedial action, including deletion. In the case of SCL Group, Facebook did not suspend the company from its platform until 2018.’ 

‘The ICO found that the personal information of at least one million UK users was among the harvested data and consequently put at risk of further misuse.’

In July, the ICO issued a Notice of Intent to fine Facebook as part of an investigation into the use of data analytics for political purposes.

After considering representations from the company, the ICO has issued the fine to Facebook and confirmed that the amount – the maximum allowable under the laws which applied at the time the incidents occurred - will remain unchanged. This fine was served under the Data Protection Act 1998, which was replaced in May by the new Data Protection Act 2018, alongside the EU’s GDPR. These provide a range of new enforcement tools for the ICO, including maximum fines of £17 million or four per cent of global turnover.

Elizabeth Denham, UK information commissioner, said Facebook failed to sufficiently protect the privacy of its users before, during and after the unlawful processing of this data.

“A company of its size and expertise should have known better and it should have done better,” she said.

“We considered these contraventions to be so serious we imposed the maximum penalty under the previous legislation. The fine would inevitably have been significantly higher under the GDPR. One of our main motivations for taking enforcement action is to drive meaningful change in how organisations handle people’s personal data.

“Our work is continuing. There are still bigger questions to be asked and broader conversations to be had about how technology and democracy interact and whether the legal, ethical and regulatory frameworks we have in place are adequate to protect the principles on which our society is based.”

Facebook launched an eight-week marketing campaign targeted at Australian consumers in June.

As part of a broader communications campaign, ‘Here Together’ was launched to drive awareness of the changes Facebook has made to protect people's privacy, remove fake accounts from the platform and ensure people have a positive experience using the platform.

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

Blog Posts

How can organisations debias their decisions?

​People whose personal details and experiences signal they come from racially diverse backgrounds are less likely than anglo or Caucasian candidates to make it through the first cut in recruitment processes. Even if the organisation says it values diversity.

Dr Karen Morley

Author, commentator

Is your marketing team adapting quickly enough to the COVID-19 crisis?

The impact of coronavirus is far reaching with the true impact on the economy and businesses is unknown. While there are a few categories and brands experiencing growth, for the most part the crisis is wreaking havoc for large and small operators across many sectors including entertainment, tourism, retail, fitness, services and the list goes on.

Teresa Sperti

Founder, Arktic Fox

Why COVID-19 makes it more important than ever to move at the speed of the consumer

There is no doubt the challenges we are facing as businesses, advertisers and audiences with COVID-19 are all unprecedented. But with this comes an opportunity to take stock and re-evaluate current strategies, plans and processes to drive efficiencies and relevance in today's market.

Emma Macey

General manager, SuperNova Media

Great article. Well said!Https://www.virtualtradesho...Virtual conference

Curtis Okeefe

Can virtual events fill the digital conference gap?

Read more

Why these voice assistants are so popular nowadays? Maybe I should get one too? I am really curious.

Jill Kim

Aussie brands jump on voice-interaction bandwagon following Amazon Alexa's local launch

Read more

We encourage you to share your thoughts on your favorite social platform. Digital Marketing Consultant HyderabadDigital Marketing Analyst...

Chaitanya Nandigam

CMO interview: Charting a new customer course at a NFP fintech

Read more

Extremely insightful and well written. Thanks for the great article!

Nicole Brodie Nahum

Why COVID-19 makes it more important than ever to move at the speed of the consumer

Read more

Blockchain is one of the fastest growing technology in today's digital era. Industries like banking and finance are already using blockch...

Aniket Singh

Can blockchain deliver on its big advertising promises?

Read more

Latest Podcast

More podcasts

Sign in