All Facebook users are monitored by thousands of brands

by | Jan 18, 2024 | Digital Marketing, Facebook, Meta, Paid social, PPC

Facebook’s extensive monitoring and collection of user data has recently been brought to light through a study conducted by Consumer Reports. The study revealed that an average of 2,230 companies actively share data about each user with Facebook, with some instances of data being shared by as many as 7,000 companies. These statistics raise concerns about data privacy and have the potential to significantly impact the reputation of brands that utilize Facebook for advertising.

Furthermore, as data privacy regulations become more stringent, particularly in the European Union, these numbers also give rise to legal and ethical concerns. Although Facebook offers transparency tools, Consumer Reports identified issues with them, including the unclear identity of many data providers and the inability of some companies providing services to advertisers to disregard user opt-out requests.

To conduct the study, Consumer Reports collaborated with The Markup to recruit 709 volunteers willing to share their Facebook data archives. Participants downloaded a three-year data archive from their Facebook settings, allowing the organizations to analyze “server-to-server” tracking and uncover how many companies were sharing user data with Facebook. However, the study acknowledges that its findings may not be fully representative of the U.S. population as a whole due to the self-selection of participants, lack of demographic adjustments, and potential bias in the sample.

In response to the study, Meta, the parent company of Facebook, stated that they offer transparency tools to help people understand the information shared by businesses and manage how it is used. Consumer Reports, the organization behind the study, is an independent, nonprofit organization that aims to uncover truth, transparency, and fairness in the marketplace. The Markup, which collaborated with Consumer Reports, is a non-profit newsroom that investigates and challenges technology for the public’s benefit.

In conclusion, the study conducted by Consumer Reports shed light on the extensive data sharing that occurs as a result of Facebook’s monitoring of user activities. The findings raise concerns about data privacy, trust issues, and potential legal and ethical implications for businesses and advertisers. The full report is available for those who wish to delve deeper into the details of the study.

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