Lawsuit Alleges Facebook Inflated Video View Statistics to Fool Advertisers

A new lawsuit filing alleges that Facebook purposefully inflated the time spent watching videos on its platform by 150 percent to 900 percent to mislead advertisers and inflate advertising rates.

A lawsuit reported on by the Wall Street Journal alleges that Facebook was aware of issues on how the site measured views of video ads for more than a year before it disclosed the issue in 2016. A group of advertisers brought a lawsuit against the social media firm in 2016 for failing to disclose the error earlier, accusing Facebook of engaging in unfair business practices by publishing inaccurate metrics that overestimated how long users spent watching ads and ultimately misled advertisers.

Later, the group of advertisers added a claim of fraud, and in a filing on Tuesday they have now alleged that Facebook knew of the advertising metric bug as early as January 2015 and determined the nature of the miscalculation within months, but failed to disclose this information to advertisers for over a year. The latest filing came shortly after the advertiser’s review of 80,000 pages of internal Facebook records.

 

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