HUD Slaps Facebook With Discrimination Charge | Zero Hedge

The U.S. Department of Housing and Urban Development (HUD) has charged Facebook with "violating the Fair Housing Act by encouraging, enabling, and causing housing discrimination through the company’s advertising platform," according to court documents.

HUD said in a statement Thursday that Facebook was "unlawfully discriminating" by allowing advertisers to define the audience based on race, color, national origin, religion, familial status, sex, and disability, in direct breach of the Fair Housing Act.

HUD claims the social media company permitted advertisers to redline poor neighborhoods.

"Facebook is discriminating against people based upon who they are and where they live," said HUD Secretary Ben Carson. "Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face."

HUD General Counsel Paul Compton said, "Even as we confront new technologies, the fair housing laws enacted over half a century ago remain clear—discrimination in housing-related advertising is against the law. Just because a process to deliver advertising is opaque and complex doesn’t mean that it exempts Facebook and others from our scrutiny and the law of the land. Fashioning appropriate remedies and the rules of the road for today’s technology as it impacts housing are a priority for HUD."

Facebook said that it was shocked by the charges - as it has continued to work with the housing department to "address their concerns" since August 2018.

"While we were eager to find a solution, HUD insisted on access to sensitive information, like user data, without adequate safeguards. We’re disappointed by today’s developments, but we’ll continue working with civil rights experts on these issues," Facebook said.

In Thursday’s complaint, HUD announced that anyone who has been hurt by Facebook's illegal advertising practices could seek damages, plus the "maximum civil penalty" for each violation of the housing act.

Facebook came under heavy criticism from U.S. lawmakers last April who grilled the social network for abusive ad targeting, housing, and employment discrimination and hate speech.

The company's ad-targeting practices have also been criticized by ProPublica, which in 2016 revealed that the company allowed advertisers access to ethnic filters. After the report, Facebook pledged new reforms and overhauls of its ad business.

Facebook shares are mixed in Friday's afternoon session up 35bps to 166.10 and down more than 20% since the July 2018 high of 210.