Regulator Says Facebook's Ad Targeting System Allows Discrimination

   By Micah Maidenberg 
 

A federal regulator says that Facebook Inc.'s ad targeting system violates the Fair Housing Act by permitting discrimination on the basis of race, color, religion and other legally protected statuses.

Facebook's ad tools "invite advertisers to express unlawful preferences by suggesting discriminatory options, and Facebook effectuates the delivery of housing-related ads to certain users and not others based on those users' actual or imputed protected traits," according to a complaint from the Assistant Secretary for Fair Housing & Equal Opportunity, part of the U.S. Department of Housing and Urban Development.

To support its claim, the complaint gave a range of examples, saying Facebook enables advertisers to discriminate by showing ads to only men or women and by permitting advertisers to not show ads to people who live in majority-minority zip codes.

A spokeswoman for the housing and urban development department didn't immediately return a call.

In a statement, a spokesman for Menlo Park, California-based Facebook said discrimination is "strictly prohibited" in the company's policies.

"Over the past year we've strengthened our systems to further protect against misuse," he said. "We're aware of the statement of interest filed and will respond in court; and we'll continue working directly with HUD to address their concerns."

Shares in Facebook fell 0.5% to $173.80 on Friday.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

August 17, 2018 17:58 ET (21:58 GMT)

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