Facebook Accused in Suit of Enabling Discriminatory Housing Ads

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The National Fair Housing Alliance joined three other groups in the lawsuit, which claims that Facebook's advertising tools continue to enable marketers to exclude women and families with children from seeing certain housing ads.

Facebook has failed to eliminate discriminatory housing ads from its platform despite promises to do so, a lawsuit filed Tuesday by the National Fair Housing Alliance says.

"The way people find housing in 2018 is radically different than when the Fair Housing Act was passed in 1968", said Robert Schwemm, a law professor at the University of Kentucky and author of "Housing Discrimination: Law and Litigation".

The suit seeks class-action status. Regulators and attorneys general across the country are now probing Facebook's role in the data collection, and the Federal Trade Commission announced Monday it was investigating the company. The suit comes as the social network is scrambling to deal with an global crisis over the misuse of data belonging to 50 million of its users. "Facebook ought to be opening doors to housing opportunities instead of closing them".

The organization filed a lawsuit against Facebook in the U.S. District Court for the Southern District of NY in conjunction with the Fair Housing Justice Center in NY, the Housing Opportunities Project for Excellence in Miami and the Fair Housing Council of Greater San Antonio.

The lawsuit adds to Facebook's woes, which are mounting on multiple fronts.

The lawsuit said Facebook allows advertisers to "target" its audience by allowing them to "include" or "exclude" specific types of people.

Emulating ProPublica's technique, the Washington, D.C. -based national fair housing group, along with member groups in New York, San Antonio and Miami created fake housing companies and placed discriminatory ads on Facebook. Facebook estimated that the ad would reach 280,000 people. That would open the company up to having to pay damages to what could be tens of millions of Android users who used Facebook Messenger over the past few years. An email to Facebook wasn't immediately returned.

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Facebook earned almost all of its more than $40 billion in revenue in 2017 by selling ads on its network.

The Fair Housing Act makes it illegal to publish any advertisement "with respect to the sale or rental of a dwelling that indicates any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin".

Discrimination in housing advertising has been a persistent problem for Facebook. "Facebook and its advertisers have made the ad invisible to them". "There is absolutely no place for discrimination on Facebook".

It wasn't until ProPublica brought the issue of advertising discrimination on Facebook to light, Houk said, that fair housing advocates learned of it.

This is not the first time advocacy groups have called on Facebook to change its advertising practices.

A couple of weeks after the groups bought housing ads, so did ProPublica (independently) - and we excluded some of the same categories, such as "soccer moms".

In response, Facebook announced it would end the use of "ethnic affinity marketing".

All of the ads were approved in an hour or less, the complaint states.

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