The social-media platform is facing a class-action lawsuit for allegedly targeting children over multiple years to spend their parents’ money—in some cases, thousands of dollars—on online games such as Angry Birds, and often refusing to give it back. (Reveal)
Talking point: In court documents unsealed in response to a legal action by Reveal from the Center for Investigative Reporting, Facebook is alleged to have encouraged game developers to let children spend money without their parents’ permission—some children weren’t aware that they were spending money. Reveal also claims Facebook ignored its employees’ warnings that it was duping kids. One group of employees reportedly developed a method that reduced the scope of the issue, but the company didn’t implement it, telling game developers it was focused on maximizing revenues, according to court filings. The suit’s allegations are reminiscent of an October 2018 lawsuit, where a group of advertisers alleged that Facebook had committed fraud by inflating the value of video ads. In that case, complainants claimed Facebook knew of the issue as early as 2015, but didn’t alert advertisers until late 2016—and, that it didn’t properly disclose the extent to which it had inflated video viewership metrics.