Meta Confirms Intention to Appeal U.S. Judge’s Ruling in Privacy Fight with FTC

Meta lost the latest round of its legal battle with the Federal Trade Commission (FTC) over privacy on Monday after a federal judge ruled a U.S. regulator can seek to reduce the amount of money the social media company makes from users under 18. The company, which also owns  WhatsApp and Instagram and Facebook stated their intentions of appealing the decision.

Big setback for @Meta today in that a DC judge ruled he lacks jurisdiction to block @FTC from reopening its 2020 $5 bilion #privacy settlement with @facebook to perhaps block monetization of minors #personaldata on FB, #Instagram @WhatsApp and @MetaQuestVR pic.twitter.com/eJytyosWxj

— Mike Swift (@Swiftstories) November 27, 2023

For context, the Judge of the U.S. District Court for the District of Columbia, Timothy Kelly, denied a motion filed by Meta on Monday for the court to hear the dispute with FTC. The judge noted that Meta did not have jurisdiction over a 2020 settlement in their 17-page order, thus resulting in the company’s Tuesday court-filing appeal. 

While much of the dispute centres on whether an FTC judge or a district judge will decide whether the FTC can unilaterally tighten previous consent decrees to restrict meth conduct against young users, the legal process will probably move more quickly with both parties appealing their decision to the U.S. appeals court.

How Did The Battle Between Meta and FTC Start? 

It started in May, when the FTC proposed amendments to a 2019 settlement that required Facebook to pay $5 billion in 2021.  further accused Meta of misleading parents about how much control they had over who their children had contact with in the Messenger Kids app, among other issues.

As for their validation, the FTC stated it would strengthen its 2019 agreement that prohibits Meta from profiting from data collected about users under 18, including in its virtual reality business. Moreover, they would also expand limitations in facial recognition technology since Meta, apart from TikTok, gets more than 98% of its income from digital ads targeted using personal data.

Meta spokesman Andy Stone responded and called the FTC proposal a “political stunt” and vowed to contest the effort. “Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory. We have spent vast resources building and implementing an industry-leading privacy program under the terms of our FTC agreement. We will vigorously fight this action and expect to prevail.”

History Between Meta and FTC Dates Back a Decade Ago

It is not the first time Meta and FTC have butted heads against one another, as the FTC has twice before settled with Facebook over privacy violations. Facebook agreed in 2019 to pay a record $5 billion fee to resolve allegations it had violated the 2012 consent order by misleading users about how much control they had over their personal data. 

Furthermore, the agency also asked a federal court in 2020 to order Facebook to sell Instagram, which it bought for $1 billion in 2012, and WhatsApp, which it purchased for $19 billion in 2014. However, this case has yet to go on trial, and we may never see it surfaced. 

Meta’s Response to Latest Allegations

In light of its latest allegations about children and privacy, a spokesman from Meta stated that the FTC’s accusations were “without merit.” He further mentioned: “Today’s decision does not address the substance of the FTC’s allegations, which are without merit. We are considering our legal options in light of the court’s ruling and will continue to vigorously fight the FTC’s unlawful attempt to rewrite our agreement unilaterally.”

While Meta disagrees with the decision, some are rejoicing over the judgement. Danny Weiss, chief advocacy officer at Common Sense Media, stated: “The district judge is absolutely right. Meta is a runaway train when it comes to its failure to protect children and teens online, including as we are learning through the new multi-state AG’s lawsuit, knowingly capturing and using young people’s data contrary to existing law.”

John Davisson, director of litigation at the Electronic Privacy Information Center, also gave his verdict: “Dragging this case into court before the agency process had even played out was a delay tactic by Meta. Meta will have every chance in the FTC’s hearing process to argue that the consent order should stay unchanged, and the company can renew those arguments in court if it appeals the FTC’s final decision.”

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Will Meta’s Appeal Prove Successful?

According to Davisson, Meta has a massive hurdle to overcome as the odds are not stacked in their favour. For example, he mentioned that the recent reports about Meta illegally exploiting kids’ personal data and targeting adults with ads that run alongside suggestive videos of minors on Instagram only add to their predicament.

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