Meta Settled DOJ Case Over Algorithmic Discrimination in Housing Ads

Summary

In June 2022, the U.S. Department of Justice sued Meta Platforms over allegations that Facebook's housing advertising system discriminated against users based on protected characteristics including race, color, religion, sex, disability, familial status and national origin, in violation of the Fair Housing Act. DOJ alleged that Meta's advertising algorithms helped determine which users actually received housing advertisements and relied in part on characteristics protected by federal housing law. The government also challenged Meta's “Special Ad Audience” tool, which used machine learning to identify Facebook users similar to an advertiser's selected audience. Meta reached a settlement requiring it to stop using the Special Ad Audience tool for housing advertisements and develop a new system designed to reduce disparities in ad delivery. Meta also agreed not to provide housing advertisers targeting options directly related to Fair Housing Act-protected characteristics. The settlement subjected Meta's advertising system to court oversight and independent compliance review. Meta was also required to pay $115,054, the maximum civil penalty available under the Fair Housing Act at the time. In January 2023, DOJ confirmed that Meta had developed its new Variance Reduction System and agreed on compliance targets. Sources: U.S. Department of Justice — United States v. Meta Platforms https://www.justice.gov/crt/case/united-states-v-meta-platforms-inc-fka-facebook-inc-sdny U.S. Department of Justice — Settlement announcement https://www.justice.gov/archives/opa/pr/justice-department-secures-groundbreaking-settlement-agreement-meta-platforms-formerly-known U.S. Attorney's Office — Implementation and compliance requirements https://www.justice.gov/usao-sdny/pr/united-states-attorney-implements-groundbreaking-settlement-meta-platforms-inc-formerly