Australian Facebook users impacted by the Cambridge Analytica data harvesting scandal will be able to access a $50 million fund as part of a settlement that brings to an end more than six years of investigations and legal battles.

The Office of the Australian Information Commission (OAIC) has been investigating the impact of the Cambridge Analytica scandal on Australians since early 2018.

The scandal involved the personal data of millions of Facebook users being hoovered up from a personality quiz in early 2018 and passed on to a British political consulting firm without users’ consent.

OAIC launched Federal Court proceedings against Facebook parent company Meta in early 2020, and has been locked in protracted legal battles against the tech giant since, with Meta attempting to argue that it does not actually operate in Australia.

This battle has now come to an end, with the OAIC and Meta agreeing to an enforceable undertaking which will see the tech firm enter into a $50 million payment scheme open to eligible Australian Facebook users.

“Today’s settlement represents the largest ever payment dedicated to addressing concerns about the privacy of individuals in Australia,” Australian Information Commissioner Elizabeth Tydd said in a statement.

“It represents a substantive resolution of privacy concerns raised by the Cambridge Analytica matter, gives potentially affected Australians an opportunity to see redress through Meta’s payment program, and brings to an end a lengthy court process.”

No admission of wrongdoing

In a statement, a Meta spokesperson said the undertaking does not include any admission of wrongdoing by the company and serves to “close the chapter on allegations” about the matter.

It was revealed six years ago that in 2014 and 2015 that British consulting firm Cambridge Analytica had accessed and scraped the personal data of 86.3 million Facebook users around the world through a personality quiz on the ‘This is Your Life’ app, which was based on Facebook’s API at the time.

Cambridge Analytica claimed to have influenced more than 200 elections around the world. While just 53 Australians were found to have downloaded the app in question, the personal data of 311,127 Australians was caught up in the scandal.

The $50 million fund will be open to Australians who had a Facebook account from 2 November 2013 to 17 December 2015, were present in Australia for more than 30 days during that period, and who had either installed the This is Your Life app or were Facebook friends with someone who did.

Payment eligibility

The payment scheme will be split into two tiers.

The first will provide individuals with a base payment if they believe they experienced generalised concern or embarrassment due to having their data scraped, while the other will be for those who can demonstrate they have suffered loss or damage, making them eligible for higher payments.

As part of the undertaking, Meta is required to appoint an independent third-party to administer this fund early next year, and applications are expected to be open from the second quarter of 2025.

“The payment scheme is a significant amount that demonstrates that all entities operating in Australia must be transparent and accountable in the way they handle personal information, in accordance with their obligations under Australian privacy law, and give users reasonable choice and control about how their personal information is used,” Australian Privacy Commissioner Carly Kind said.

Get the word out

Meta will also be required to take reasonable steps to publicise the payment scheme and to notify individuals who may be eligible for it.

The OAIC launched civil penalty proceedings against Meta in early 2020, two years after the Cambridge Analytica revelations.

Meta has tried to argue in Federal Court that its holding company did not actually operate in Australia.

This was rejected, with Meta then arguing before the High Court that its actions are not covered by the Privacy Act as it states that an international company must have an “Australian link” which is determined based on whether it “carries on business in Australia”.

This was also eventually thrown out by the High Court.