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Over 300,000 consumers will each receive a portion of the $31.7 million payment.
Facebook's parent company, Meta, has now reached an agreement to compensate 311,000 Australian users with AUD $50 million ($31.7 million) in compensation for the Cambridge Analytica incident. This controversy continues to weigh heavily on Facebook. After a battle with Meta that lasted for four years, the resolution with the Office of the Australian Information Commissioner (OAIC) was reached. This settlement follows an award of $725 million in the United States, as well as payouts in the United Kingdom and other countries.
"It represents a substantive resolution of privacy concerns raised by the Cambridge Analytica matter; gives potentially affected Australians an opportunity to seek redress through Meta’s payment program; and brings to an end a lengthy court process," according to the Australian commissioner for information, Elizabeth Tydd.
An app called "This is Your Digital Life" allowed Cambridge Analytica, which has since been shut down, to gain access to the personal information of Australian users. The company then utilized the information it obtained to send messages that were specifically customized to each individual. In 2018, the issue was brought to light by both The New York Times and The Guardian, with Christopher Wylie playing a significant role in the disclosure of the information. Despite the fact that the software was only downloaded by a tiny number of users, it was able to access the data of their friends, which resulted in an overall impact of 311,127 individuals.
Beginning at the beginning of the year 2025, Meta will be forced to establish a payment system that will be managed by a third-party administrator. When it comes to payouts, individuals who have experienced "generalized concern or embarrassment" will receive lower amounts, while those who can demonstrate that they have suffered loss or harm would receive bigger sums. Anyone who is impacted should be able to submit an application during the second quarter of 2025.
Meta issued a statement in which she expressed no remorse and stated that the settlement was more or less a case of corporate decision-making. "We settled as it is in the best interest of our community and shareholders that we close this chapter on allegations that relate to past practices no longer relevant to how Meta’s products or systems work today," a spokeswoman told the British newspaper The Guardian. The lawsuit was resolved after a period of four years, mostly due to the fact that Meta argued that it was not properly conducting business in Australia. However, the argument was ultimately dismissed by the highest court with jurisdiction in the country.