Meta to Pay $50M to Australian Facebook Users
Meta Platforms has agreed to pay $50 million to Australian Facebook users affected by the Cambridge Analytica data breach, marking the largest privacy-related compensation package in Australian history.
The settlement, reached through mediation with the Australian Information Commissioner, resolves a legal battle that began in March 2020 over allegations that Meta (formerly Facebook) breached the Privacy Act 1988 by allowing users' personal information to be harvested through the "This is Your Digital Life" app and potentially shared with Cambridge Analytica for political profiling.
"Today's settlement represents the largest ever payment dedicated to addressing concerns about the privacy of individuals in Australia," said Australian Information Commissioner Elizabeth Tydd. The agreement effectively ends the civil penalty proceedings in the Federal Court.
Under the settlement terms, eligible users must have held a Facebook account between November 2013 and December 2015 and been present in Australia for at least 30 days during that period. Qualified individuals include both those who installed the This is Your Digital Life app and their Facebook friends.
The compensation scheme, to be managed by an independent administrator, will offer two payment tiers: a base payment for users who experienced "generalised concern or embarrassment," and a higher amount for those who can demonstrate specific losses or damages. Applications for compensation are expected to open in the second quarter of 2025.
Privacy Commissioner Carly Kind emphasized the settlement's significance for tech companies operating in Australia: "This groundbreaking outcome reflects the significant concerns of the Australian community," she said, noting that even global corporations must comply with Australian privacy laws.
The settlement comes amid strengthened privacy protections in Australia, where penalties for serious privacy breaches have increased substantially. Companies now face fines of up to $50 million, three times the benefit obtained from misused information, or 30% of their adjusted turnover during the violation period, whichever is greater.
Authorities have issued a scam warning, cautioning potential claimants to be wary of fraudsters attempting to exploit the situation. Meta will work with the yet-to-be-announced third-party administrator to notify eligible users about legitimate claim procedures.
Any unclaimed funds from the settlement will be directed to the Commonwealth's Consolidated Revenue Fund.