US Government Considers Legal Action Over Meta's Use of Financial Data for Ads (msn.com)
(Saturday November 02, 2024 @06:53PM (EditorDavid)
from the following-the-money dept.)
- Reference: 0175379541
- News link: https://tech.slashdot.org/story/24/11/02/0614243/us-government-considers-legal-action-over-metas-use-of-financial-data-for-ads
- Source link: https://www.msn.com/en-us/money/companies/meta-discloses-federal-probe-into-its-use-of-financial-data-for-ads/ar-AA1tiirY
[1]The Washington Post reports that America's Consumer Financial Protection Bureau (or CFPB) "is considering legal action against Meta over allegations that it improperly used financial data obtained from third parties in its highly-lucrative advertising business..."
The article says a Meta securities filing Thursday revealed it had received a formal notification about the federal investigation last month.
> The filing said only that the inquiry relates to "advertising for financial products and services on our platform." A spokesperson for Meta declined to comment on the investigation. "We disagree with the claims," the company's filing said, "and believe an enforcement action is unwarranted...."
>
> The CFPB's probe underscores its aggressive recent focus on Big Tech. In recent years, major companies including Apple, Amazon, Facebook and Google have launched a wave of new financial services, including credit cards and apps that help users send money to friends... Under its current director, Rohit Chopra, the CFPB has also sought to ensure that tech giants adhere to the same safeguards that have long applied to their brick-and-mortar banking predecessors. The bureau formalized its tech crackdown in 2021, when Chopra [2]ordered companies including Facebook to turn over records related to their payment apps and other financial service offerings.
>
> At the time, he expressed fear that these giants already possessed troves of customer data and could solidify their dominance if they gained greater insight into users' purchasing and spending habits. "This data can be monetized by companies that seek to profit from behavioral targeting, particularly around advertising and e-commerce," [3]Chopra said in a statement announcing the review. "That many Big Tech companies aspire to grow in this space only heightens these concerns." Since then, the watchdog agency has proposed new rules that could treat Apple, Google and PayPal-owned Venmo more like banks, opening the door for federal regulators to inspect some of their operations in a bid to protect users' deposits.
>
> The rules, which have not been finalized, have sparked [4]fierce lobbying opposition from major tech companies.
[1] https://www.msn.com/en-us/money/companies/meta-discloses-federal-probe-into-its-use-of-financial-data-for-ads/ar-AA1tiirY
[2] https://www.consumerfinance.gov/about-us/newsroom/statement-regarding-the-cfpbs-inquiry-into-big-tech-payment-platforms/
[3] https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-tech-giants-to-turn-over-information-on-their-payment-system-plans/
[4] https://www.washingtonpost.com/business/2024/05/01/tech-banks-government-regulation/?itid=lk_inline_manual_15
The article says a Meta securities filing Thursday revealed it had received a formal notification about the federal investigation last month.
> The filing said only that the inquiry relates to "advertising for financial products and services on our platform." A spokesperson for Meta declined to comment on the investigation. "We disagree with the claims," the company's filing said, "and believe an enforcement action is unwarranted...."
>
> The CFPB's probe underscores its aggressive recent focus on Big Tech. In recent years, major companies including Apple, Amazon, Facebook and Google have launched a wave of new financial services, including credit cards and apps that help users send money to friends... Under its current director, Rohit Chopra, the CFPB has also sought to ensure that tech giants adhere to the same safeguards that have long applied to their brick-and-mortar banking predecessors. The bureau formalized its tech crackdown in 2021, when Chopra [2]ordered companies including Facebook to turn over records related to their payment apps and other financial service offerings.
>
> At the time, he expressed fear that these giants already possessed troves of customer data and could solidify their dominance if they gained greater insight into users' purchasing and spending habits. "This data can be monetized by companies that seek to profit from behavioral targeting, particularly around advertising and e-commerce," [3]Chopra said in a statement announcing the review. "That many Big Tech companies aspire to grow in this space only heightens these concerns." Since then, the watchdog agency has proposed new rules that could treat Apple, Google and PayPal-owned Venmo more like banks, opening the door for federal regulators to inspect some of their operations in a bid to protect users' deposits.
>
> The rules, which have not been finalized, have sparked [4]fierce lobbying opposition from major tech companies.
[1] https://www.msn.com/en-us/money/companies/meta-discloses-federal-probe-into-its-use-of-financial-data-for-ads/ar-AA1tiirY
[2] https://www.consumerfinance.gov/about-us/newsroom/statement-regarding-the-cfpbs-inquiry-into-big-tech-payment-platforms/
[3] https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-tech-giants-to-turn-over-information-on-their-payment-system-plans/
[4] https://www.washingtonpost.com/business/2024/05/01/tech-banks-government-regulation/?itid=lk_inline_manual_15
Why this? (Score:2)
Why do you have a right to privacy for financial data, but not to the porn sites you visit? Why is this data allowed to be openly sold at all?
Re: (Score:3)
> Why do you have a right to privacy for financial data, but not to the porn sites you visit? Why is this data allowed to be openly sold at all?
Because laws already exist to protect consumer financial information and reporting. Laws to protect your porn browsing habits do not exist.
Data belongs to whomever has it. Information about you is not your information. Otherwise news reporting and biographies would not be things. This is a first amendment protection -I can speak or write or trade or sell my knowledge as I choose (with few exemptions specified by law -e.g. national security, court order, non-disclosure agreements, libel, etc.)
Re: (Score:2)
> Because laws already exist to protect consumer financial information and reporting. Laws to protect your porn browsing habits do not exist.
> Data belongs to whomever has it. Information about you is not your information. Otherwise news reporting and biographies would not be things. This is a first amendment protection -I can speak or write or trade or sell my knowledge as I choose (with few exemptions specified by law -e.g. national security, court order, non-disclosure agreements, libel, etc.)
Try doing that with medical information.
Re: (Score:3)
> Try doing that with medical information.
ahh, yes. another example that would go in the " with few exemptions specified by law " part, as covered under " etc. "
Medical information is only partially protected. HIPAA restricts how certain groups handle private medical information, but does not provide blanket protection of your medical information.
Re: (Score:2)
You misunderstood my question. Obvious they are only prosecuting what they can, the question is: Why do laws apply so narrowly to only minor aspects of your privacy.
Re: (Score:3)
> Why do laws apply so narrowly to only minor aspects of your privacy.
Under the "Necessary and Proper" requirement of Article 1, Section 8 of the US Constitution, laws must be only as restrictive as necessary to accomplish their goal.
The goal of the laws were not to provide general protections to privacy*, but to provide specific protections against specific actions which were deemed harmful and abusive.
*while various "violations of privacy" have been defined in law, "privacy" has not been defined in law. It remains a social construct.