European Union Court Restricts Meta’s Utilization of Personal Facebook Information for Targeted Advertisements
The supreme court of Europe has decreed that Meta Platforms must limit the usage of personal information gathered from Facebook for customized ads even if users agree to their data being used for promotional aims, a judgment that might bear substantial consequences for businesses reliant on ads in the area.
“A social network online such as Facebook is not allowed to employ all of the personal details acquired for the objectives of tailored marketing, without limitations concerning duration and without differentiation regarding the kind of records,” explained the Court of Justice of the European Union (CJEU) stated during a ruling delivered on Friday.
In simpler terms, social networks like Facebook are prohibited from continuous utilization of users’ personal data for advertisement targeting forever, the court mentioned, adding that constraints need to be imposed to adhere to the bloc’s General Data Protection Regulation (GDPR) data reduction prerequisites.
It’s important to note that Article 5(1)(c) of GDPR demands that companies restrict the handling to crucially essential data, preventing the collected personal data about an individual — whether amassed on or beyond the platform via external entities — from getting merged, evaluated, and managed for targeted advertising without restrictions based on time.
The lawsuit was initially initiated by privacy activist and noyb (None Of Your Business) co-founder Maximilian “Max” Schrems in 2014 over allegations that the social media behemoth targeted him with custom-made ads rooted in his sexual preference.
“The reality that an individual has expressed a viewpoint about his or her sexual orientation during a public discussion session doesn’t authorize the operator of an online social network to manipulate other data connected to that individual’s sexual orientation, acquired, as applicable, beyond that platform using partner external websites and apps, with an intention to aggregate and analyze those data, to offer that individual personalized promotional messages,” noted the CJEU.
Noyb, in a declaration, stated it greeted the verdict and that the outcome was within predicted paths, affirming the ruling also extends to any other online advertisement enterprise that lacks rigorous data erasure methodologies.
“Meta and numerous entities in the internet advertisement niche have casually disregarded this guideline and did not anticipate any expunging durations or constraints determined by the type of personal data,” the Austrian non-governmental body explained.
“The enforcement of the ‘data minimization principle’ significantly confines the usage of personal data for advertising. The principle of data minimization applies irrespective of the legal basis employed for the processing, meaning even a user who agrees to personalized promotion can’t have their personal data leveraged infinitely.”
In a statement shared with Reuters, Meta stated it has exerted financial resources to “immerse privacy” in its items, mentioning it “doesn’t leverage special categories of data that users furnish to personalize ads while advertisers are forbidden from disclosing sensitive data.”
The evolution arises as Texas Attorney General Ken Paxton has initiated a lawsuit against ByteDance-owned TikTok for alleged breaches of child privacy regulations in the U.S. state, alternately titled the Securing Children Online Through Parental Empowerment (SCOPE) Act.
The litigation blamed TikTok of neglecting to afford appropriate tools enabling parents and custodians to manage the privacy and account configurations of juveniles aged between 13 and 17.
“For instance, parents or guardians lack the capability to regulate [TikTok’s] dissemination, revelation, and trade of a recognized minor’s personal identifying data, nor govern [TikTok’s] potential to showcase tailored advertisements to a known minor,” the lawsuit mentioned.
“The legislation of Texas mandates social media firms to initiate measures to safeguard youngsters online and obligates them to equip parents with tools to accomplish the same,” Paxton mentioned. “TikTok and other social media entities cannot disregard their obligations under Texas regulation.”
TikTok, which prohibits targeted advertisements for individuals under 18, expressed its strong opposition to the accusations, affirming it provides comprehensive safeguards for young adults and parents, including family pairing, all of which are publicly accessible.
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