Understanding privacy laws through the $51 million Douez v Facebook settlement
The recent $51 million settlement in the class action lawsuit Douez v Facebook, Inc., 2022 BCSC 914, highlights crucial aspects of privacy laws in Canada, particularly in British Columbia, Saskatchewan, Manitoba, and Newfoundland and Labrador. The case centered around Facebook’s “Sponsored Stories” advertising program, where users’ names and images were used without their consent, sparking legal action.
Sponsored Stories involved showcasing a user’s social actions in advertisements alongside an advertiser’s brand without notifying the user. These ads appeared on friends’ Facebook homepages, potentially prioritizing the content over other updates. Despite Facebook’s argument that users consented to such use through its Terms of Use, the British Columbia Supreme Court found that this violated provincial privacy statutes across different Canadian regions.
One key aspect of the case was the ambiguity in Facebook’s Terms of Use, which failed to define crucial terms like “give.” The court noted that in the context of standard form contracts, any ambiguity should be interpreted against the drafting party, in this case, Facebook. Additionally, users were not adequately informed that their actions could be repurposed into Sponsored Stories, and the privacy settings offered by Facebook were deemed ineffective in empowering users to control the use of their personal information.
While Facebook disputed the allegations, it agreed to settle the class action for $51 million, demonstrating an acknowledgment of the importance of obtaining clear consent and ensuring effective privacy protections. The settlement marked the conclusion of the case, emphasizing the significance of navigating privacy laws carefully.
Businesses operating in Canada can draw valuable lessons from the Douez case. Ensuring clear and informed consent from users is essential, with transparent terms of use and privacy policies crucial to compliance. Businesses must respect provincial privacy laws and obtain consent before using personal information, especially in the context of standard form contracts. Providing users with robust privacy controls is not only a good practice but may also be a legal requirement, enabling users to opt out of programs involving their personal information.
Ultimately, the Douez v Facebook, Inc. case sheds light on the importance of privacy protections and the need for businesses to navigate privacy laws diligently, particularly in the digital landscape where personal information is increasingly utilized for various purposes. By prioritizing clear consent, transparency, and effective privacy controls, businesses can uphold legal obligations and maintain the trust of their users.
