Facebook might be the preferred social
network in the US but that doesn’t mean it is immune from criticism or
legislation protecting consumer rights. Most recently Facebook has fallen into
some hot water following allegations from two American users that the site had
scanned private messages for key words to sell to advertisers for targeted
messages.
Ever since Facebook began commercializing
data there was always a risk that the company would come under some sort of
scrutiny around how they decide to use it. Facebook may have taken some comfort
from the fact that other data mining companies have been here before and have
come through the other side relatively unscathed. However the fact that the
class action is raised from 2 users on behalf of what could be millions of US
Facebook users will be a huge concern to the social media giant. However this
will only be a concern for Facebook if it begins to hit the finances and as of
yet the stock price has remained flat.
Facebook are no strangers to the
controversy that can arise from the uncertainties of data handling. In 2012
they were forced to drop face recognition technology due to the uncertainties
around how the data was used.
The question now is how will the most
recent lawsuit in regards to Facebook data policy impact the brand in the
long-term? The answer to that question will come down to how Facebook approach
the publics concerns. There needs to be some clarity around exactly how
Facebook intend to use the data and maybe more importantly what access rights
advertisers is given when they purchase it. It is clear from recent popularity polls
and Facebook’s stock price that there isn’t too much to worry about now. But
the data issue won’t go away so the reputation of the Facebook brand and
popularity with its users in the long-term will depend on how well they communicate
the data policy to users.
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