Skip to main content

Facebook disables ethnic exclusion tool for housing, employment, and credit ads

facebook news hire
bloomua / 123rf
Facebook will no longer allow marketers to use its “ethnic affinity” targeting option for ads pertaining to housing, employment, or credit.

The past several weeks have seen the company come under immense pressure following the release of a report by non-profit news organization PropPublica claiming the tool is unlawful. Shortly after the article’s publication Facebook was hit with a lawsuit that alleged the feature violates both the Civil Rights Act of 1964 and the Civil Rights Act of 1968, popularly known as the Fair Housing Act.

Ethnic affinity is a targeting option within Facebook’s ad creation tool, which allows marketers to exclude certain users whose Facebook activities mirror certain target demographics, including African Americans, Asian Americans, or Hispanics — from their promos on the social network.

The Civil Rights Act of 1964 outlaws employers from discriminating against prospective employees as part of the hiring process based on race, color, religion, sex, or national origin. The Fair Housing Act makes it illegal to do the same in regards to housing advertisements.

Despite previously defending the ethnic affinity option as a “common practice” within the ad industry, it seems Facebook has bowed to public pressure. The announcement to indefinitely stop ethnic exclusion from select ads was made in a blog post authored by the company’s VP, U.S. Public Policy, and Chief Privacy Officer Erin Egan.

“We will disable the use of ethnic affinity marketing for ads that we identify as offering housing, employment, or credit,” writes Egan. “There are many non-discriminatory uses of our ethnic affinity solution in these areas, but we have decided that we can best guard against discrimination by suspending these types of ads.”

Seeing as the lawsuit is ongoing, Digital Trends reached out to Facebook for an update regarding its stance on the complaint. The company says its decision was not influenced by the lawsuit, which it claims is without merit, and that the firm is still committed to defending itself against the complaint. Facebook also reiterated that its ethnic affinity tool is intended to promote multicultural marketing that helps people see content that is relevant to the “cultural communities they are interested in.”

It added: “Our policies prohibit using our targeting options to discriminate, and they require compliance with the law.”

Facebook told us it is moving the ethnic affinity clusters from the “demographics” section to the “behaviors” section within its targeting tool.

In her blog post Egan claimed Facebook is building tools to detect and automatically disable the use of ethnic affinity marketing for certain types of ads. The company met with a number of important leaders in its efforts to update its advertising policies, including Attorney General Eric Schneiderman, Rep. Robin Kelly, D-Illinois and the Congressional Black Caucus, and Rep. Linda Sánchez, D-California and the Congressional Hispanic Caucus.

Egan also claims Facebook engaged in “constructive dialogue” with several advocacy groups. These include the Leadership Conference on Civil and Human Rights, the American Civil Liberties Union, the NAACP Legal Defense Fund, the National Fair Housing Alliance, the Center for Democracy & Technology, the Brookings Institution, and Upturn.

Saqib Shah
Former Digital Trends Contributor
Saqib Shah is a Twitter addict and film fan with an obsessive interest in pop culture trends. In his spare time he can be…
Facebook says iOS 14’s new privacy tools could harm its ad business
apple ios 14 beta hands on review siri icon

Apple has made it even more difficult for developers to mine your data on iOS 14. One of the new additions prevents advertisers from covertly tracking you across nearly all apps and websites, and Facebook, for one, is not looking forward to it.

On Facebook’s second-quarter follow-up earnings call, David Wehner, the company’s chief financial officer, called the forthcoming update a “headwind” and said it will “make it harder for app developers and others to grow using ads on Facebook and, really, outside of Apple, to some extent.”

Read more
Facebook ad boycotters to Congress: Don’t let Zuckerberg off easy
mark zuckerberg thinking

The organizers of the #StopHateforProfit Facebook ad boycott have written a letter to the House Judiciary Committee asking the members to particularly press Facebook CEO Mark Zuckerberg about the company’s alleged monopoly over the advertising sphere.
First reported by Axios, the letter suggests several pointed questions that lawmakers could ask: For instance, what percentage of U.S. digital ad spending runs through Facebook and its subsidiaries, what this means for small and medium businesses, and whether there are any alternatives for advertisers to reach certain demographics with the power and efficiency that Facebook uses. The questions seem intended to get at whether Facebook is truly the monopoly it claims not to be.
In June, several hundred major brands, including Coca-Cola, Unilever, and Starbucks, signed on with activist groups led by Common Sense Media, the National Association for the Advancement of Colored People, and the Anti-Defamation League to remove their ads from Facebook for the month of July. This was an attempt, the groups said, the put pressure on Facebook to change its policies about hate speech and misinformation.

However, Facebook has proven resilient against so many big advertisers leaving its platform. Although MarketWatch reported that its stock tanked briefly in June when the boycott was announced, total ad revenue has remained basically steady throughout the boycott, according to Forbes. The social media giant is set to publish its second-quarter earnings report on Thursday, which should show whether the boycott had any kind of major effect on Facebook's bottom line.

Read more
Facebook ordered to pay $650 million in facial recognition lawsuit
The Facebook home page on a screen.

A federal judge has ordered Facebook to pay $650 million -- $100 million more than originally agreed -- to settle a 2015 facial recognition lawsuit, according to a Wednesday court filing.

The federal judge assigned to the case said the original payment amount of $550 million did not properly punish the social network for its wrongdoings, Fortune reported.

Read more