Meta reaches $37.5 million settlement for Facebook location tracking lawsuit

California-based Facebook uses location data "to help advertisers reach people in particular areas."

Meta Platforms Inc. settled a lawsuit accusing it of violating its users' privacy by tracking their movements through their smartphones without consent. The suit was settled for $37.5 million. A preliminary settlement of the proposed class action was filed before a San Francisco federal court and required a judge's approval. The claims raised were that Facebook violated California law and privacy policy by gathering data from users who turned off their Location Services. The users confirmed that they did not want to share their location with Facebook; however, the company inferred where they were from their IP addresses and used the information to send them targeted advertising.

Meta denied wrongdoing in agreeing to settle. It did not immediately respond on Tuesday to requests for comment. In June 2018, Facebook and Chief Executive Mark Zuckerberg told the U.S. Congress that the Menlo Park, California-based company uses location data "to help advertisers reach people in particular areas." For example, it said users who dined at particular restaurants might receive posts from friends who also ate there or ads from businesses that wanted to provide nearby services. The lawsuit began in November 2018. Lawyers for the plaintiffs may seek up to 30% of Monday's settlement for legal fees, settlement papers show.