The Justice Department said Tuesday that the United States and Facebook-owned Meta Platforms have settled a lawsuit over a housing advertising system that illegally discriminates against users based on race and other characteristics.
In a lawsuit filed in federal court in Manhattan, the Department of Justice (DOJ) said meta Encouraged advertisers to target users based on features such as race, religion and gender, in violation of the Federal Housing Act. That law prohibits discrimination in housing based on such characteristics.
Meta denied wrongdoing, but agreed to pay a civil penalty of $115,054 (about Rs 89 lakh), the highest allowed under the law. Complaints of ad-based discrimination have plagued the company since 2016, and the company has settled with Washington state and rights groups on similar allegations.
As part of the deal, the company agreed to stop using an algorithmic tool called ‘Special Advertising Audiences’ and to develop a new housing advertising tool by the end of the year.
“Due to this unprecedented lawsuit, Meta will – for the first time – change its ad delivery system to address algorithmic discrimination,” said Damian Williams, US Attorney for Manhattan, Told in a statement.
Meta said it will also use the new system for ads related to jobs and credits.
“Discrimination in housing, employment and credit is a deeply rooted problem in America with a long history, and we are committed to broadening opportunities for marginalized communities in these places and others,” the company said. Told in a statement.
The case stems from a 2019 civil allegation filed by the US Department of Housing and Urban Development.
DOJ said Facebook It made some changes as part of its 2019 agreement with rights groups, but said the deal does not address the delivery of ads through machine-learning algorithms.
Tuesday’s settlement is subject to review by a judge.
© Thomson Reuters 2022