Australia court fines Facebook owner Meta ₹111 crore for failing to disclose data collection activities

Australian court has fined Meta Platforms A$20 million ( 111 crore) for acquiring user data through an app that claimed to safeguard privacy.

Sounak Mukhopadhyay
Published26 Jul 2023, 06:42 AM IST
FILE - Attendees visit the Meta booth at the Game Developers Conference 2023, March 22, 2023, in San Francisco. (AP Photo/Jeff Chiu, File)
FILE - Attendees visit the Meta booth at the Game Developers Conference 2023, March 22, 2023, in San Francisco. (AP Photo/Jeff Chiu, File)(AP Photo/Jeff Chiu, File)

Meta Platforms, the owner of Facebook, has been directed by an Australian court to pay fines amounting to A$20 million ( 111 crore)) for acquiring user data through an app that claimed to safeguard privacy but failed to disclose its data collection activities.

Also, the Federal Court of Australia has ruled that Meta, along with its subsidiaries Facebook Israel and the previously discontinued app Onavo, must also bear the legal costs of A$400,000 ( 2.2 crore) to be paid to the Australian Competition and Consumer Commission, the party responsible for initiating the civil lawsuit, Reuters reported.

The Australian government led by Anthony Albanese has unveiled a series of planned amendments to the Privacy Act aimed at modernising the legislation in the digital era.

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Among the notable proposals is one inspired by the European "right to be forgotten" laws, with a specific focus on online search results. This proposal seeks to grant individuals the right to have certain personal information removed from online search results.

The targeted information includes medical history, details about minors, excessively comprehensive data, or information that is inaccurate, outdated, incomplete, misleading, or irrelevant.

Australia’s new privacy law

In February, the Australian government published a long-awaited report reviewing the Privacy Act, suggesting significant modifications to Australia's primary privacy legislation.

The changes seek to bring greater clarity and specificity to the existing elements of Australian privacy law. The proposed requirements will have an impact on how businesses in various sectors within the Australian economy gather and manage individuals' personal information.

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Numerous businesses, both large and small, will be required to make adjustments to their procedures and policies to ensure compliance with the proposed changes. For multinational companies that are already subject to the EU General Data Protection Regulation ("GDPR"), some of the proposals will be familiar.

The suggested alterations to the enforcement system are also noteworthy from a business risk management standpoint and complement the significant penalty reforms that were introduced to the Privacy Act in December 2022.

(With Reuters inputs)

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