Meta Under Fire for Privacy Violations and Misleading Ad Practices

by admin

Meta is facing fresh controversy after a whistleblower accused the company of sidestepping Apple’s App Tracking Transparency (ATT) rules and misrepresenting the effectiveness of its advertising tools. The claims raise serious questions about both user privacy and advertiser trust.

Circumventing Apple’s Privacy Framework

Apple introduced ATT in 2021, requiring apps to obtain explicit consent before monitoring user activity across different platforms. With most people opting out, Meta projected billions in revenue losses. However, former employee Samujjal Purkayastha alleges that the company employed a method known as “deterministic matching” to piece together identifiable user data without permission. If accurate, this tactic would directly conflict with Apple’s privacy requirements.

Questionable Ad Performance Reporting

The allegations also touch on Meta’s reporting of its Shops Ads program, which launched in 2022 for Facebook and Instagram. Instead of tracking net sales like other platforms, Meta reportedly included gross figures—such as taxes and shipping fees—when calculating ad performance. According to the whistleblower, this practice inflated results by as much as 19%. Internal reviews supported the claim, but advertisers were never informed, leaving many with a distorted view of campaign effectiveness.

Subsidies and Experimental Spending

Another claim suggests that Meta devoted a $160 million budget to provide free ad placements during product testing. While subsidies are not unusual in the tech sector, failing to disclose them can mislead clients about true market demand and performance. Attempts to replace lost tracking data through machine learning also struggled, adding pressure to rely on less transparent methods.

A History of Mistrust

This is not the first time Meta has been criticized for its advertising metrics. In 2016, the company acknowledged inflating video ad view times by as much as 80%. Subsequent lawsuits revealed discrepancies of up to 900%, ultimately resulting in a $40 million settlement.

Looking Ahead

The current case is under review by a tribunal in London, with a ruling not expected until 2026. Regardless of the outcome, the accusations highlight Meta’s ongoing struggle to adapt to stricter privacy rules in the digital advertising space. More importantly, they underline a pressing question for brands: how much confidence can advertisers place in Meta’s reported results in an era where transparency and accountability are paramount?

You may also like

Leave a Comment