Meta Settles Claims That Ads Violated U.S. Fair Housing Laws

Meta Platforms Inc. is settling with a federal regulator to amend its ad delivery systems in response to concerns it may be violating the Fair Housing Act through discriminating against users.

The accord resolves a lawsuit by the US Department of Housing and Urban Development alleging that the algorithms used in Meta’s advertising systems allowed marketers to violate fair housing laws by limiting or blocking certain groups of people from seeing housing ads on the service.

“Because of this ground-breaking lawsuit, Meta will—for the first time—change its ad delivery system to address algorithmic discrimination,” Manhattan US Attorney Damian Williams said in a statement.

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Meta announced Tuesday that machine-learning technology was used to make sure ads reach all potential audiences for an ad and not only a specific group.

In a blog post, Meta wrote that it will “work to ensure the age, gender and estimated race or ethnicity of a housing ad’s overall audience matches the age, gender, and estimated race or ethnicity mix of the population eligible to see that ad.” The company will also pay a fine of just over $100,000.

Meta stated that it would use the technology to advertise for credit and employment as well as housing.

Meta’s ad targeting capabilities have come under fire in recent years. In some cases, the company’s very specific targeting options may have enabled marketers to exclude certain groups from ads, for things like housing. In other cases, Meta’s targeting options were linked to a person’s protective characteristics, like race or religion.

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In the HUD complaint, the US alleged Meta’s algorithm allowed advertisers to find users who share similarities with groups of other individuals.

Meta hopes to get the new system up and running by the end of the year, said Roy Austin, the company’s vice president of civil rights. Austin said that Meta would also be seeking feedback from civil rights organizations on the changes in coming months. Many civil rights groups have been critical of the company’s use of personal data for targeting and how it can lead to discrimination.

US v Meta Platforms Inc. (22-cv-5187), US District Court Southern District of New York

Updates and comments by Manhattan US Attorney.

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