Facebook parent Meta is changing the system for personalizing advertising for apartment ads. This has previously enabled real estate companies to use special algorithms to select potential customers based on characteristics such as skin color, origin or gender, which has brought the company a discrimination lawsuit from the US government.
After extensive examination, a settlement has now been reached that provides for an adaptation of the system and a fine of 115,054 dollars (around 109,658 euros).
“Historical comparison”
“When a company develops and applies technology that deprives users of certain housing options based on protected personal characteristics, it violates the Fair Housing Act,” said U.S. Attorney Damian Williams, according to a statement from the Defense Department of Justice . Such a discriminatory practice must be treated in the same way as traditional advertising methods.
“As technology advances rapidly, companies like Meta have a special responsibility to ensure that their algorithms are not used in a discriminatory manner,” said Assistant District Attorney Kristen Clarke.
She describes the comparison as “historic.” “This is the first time that Meta has agreed to adapt one of its algorithmic tools in response to a civil criminal proceeding. “The Department of Defense is committed to holding Meta and other tech companies accountable if their behavior harms marginalized groups,” said the lawyer.
Lawsuit from March 2019
The discrimination lawsuit was filed by the Ministry of Housing and Urban Development . This found that real estate companies were able to use Meta's advertising system to ensure that their advertisements were not shown to people with specific characteristics. For example, users with certain skin colors, origins, marital status, gender or religious affiliation could not see many apartment advertisements at all, while others could.
According to Meta, this filter function will now be eliminated by the end of the year at the latest.
Source: Press release
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