Gov’t Charges Facebook With Racial Discrimination in Targeted Housing Ads

HUD claims Facebook's ad platform is "encouraging, enabling, and causing" discrimination.

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Young people are deleting the Facebook app from their phones. (Justin Sullivan/Getty Images)
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A week after Facebook announced it would be overhauling its ad-targeting systems to prevent discrimination as part of a legal settlement, the U.S. government has charged the social media giant with housing discrimination.

In charging documents, the U.S. Department of Housing and Urban Development alleges Facebook’s targeted advertising platform violates the Fair Housing Act by “encouraging, enabling, and causing” unlawful discrimination by restricting who can view housing ads based on factors such as race, color, national origin, religion, familial status, gender, and disability.

“Facebook is discriminating against people based upon who they are and where they live,” HUD Secretary Ben Carson said in a statement. “Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face.”

Joe Osborne, a Facebook spokesman, said the platform was “surprised” by HUD’s decision.

“We’ve been working with them to address their concerns and have taken significant steps to prevent ads discrimination,” Osborne said. “While we were eager to find a solution, HUD insisted on access to sensitive information – like user data – without adequate safeguards. We’re disappointed by today’s developments, but we’ll continue working with civil rights experts on these issues.”

On Thursday morning when the charges were announced, the company’s stock fell 1.1 percent before the market opened.

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