Facebook 'Like' button threatens consumer privacy, court rules

The Consumer Advice Organisation has brought lawsuits against two online retailers over their use of Facebook’s ‘Like’ function on their pages, accusing the companies of forwarding the data of their customers on to Facebook without proper disclosure or consent. The consumer watchdog had reportedly sent cease-and-desist notices to six e-commerce companies, two of which are still in talks with the CAO and another two of which have since agreed to stop using the function.

Consent and disclosure lacking 

According to the watchdog, a built-in Facebook ‘Like’ button on e-commerce platforms will install small amounts of software onto the computers of customers who click it, allowing Facebook to compile a profile of ‘interests’ for any given IP address. This occurs regardless of whether a particular consumer has an active Facebook account. The watchdog also alleged that one platform, Fashion ID, sent the computer data of customers directly to Facebook before they had even decided whether or not to click ‘Like’.

In the first lawsuit, against Fashion ID parent company Peek & Cloppenberg, a Dusseldorf court has ruled that the company will need to clearly inform users that clicking the ‘Like’ button may forward their IP address to Facebook. ‘A mere link to a data protection statement at the foot of the website does not constitute an indication that data are being or about to be processed,’ the court said. 

Significance debated

The ruling is likely to have implications for swathes of other German e-commerce companies who use the function on their websites. However, a statement from Facebook has sought to downplay the significance of the ruling for the social media giant:

‘This case is specific to a particular website and the way they have sought consent from their users in the past,’ they said. ‘The Like button, like many other features that are used to enhance websites, is an accepted, legal and important part of the internet, and this ruling does not change that.’ Sources: Australasian Lawyer; Reuters