A new lawsuit claims that Facebook exaggerates how many people can see its ads, thereby defrauding advertisers. “In other words, it is alleged not quite as many eyeballs are seeing Facebook’s ads as its salespeople charge for,” writes Thomas Claburn via The Register. From the report: In a complaint filed on Wednesday in a US district court in Oakland, California, plaintiffs Danielle Singer and her company Project Therapy, LLC claim the Potential Reach and Estimated Daily Reach figures that Facebook provides to advertisers are wildly inflated. As an example, the complaint claims that Facebook’s purported Potential Reach among 18-to-34-year-olds in each U.S. state is greater the actual population of 18-to-34-year-olds in each of those states.
“Based on a combination of publicly available research and Plaintiffs’ own analysis, among 18-34 years-olds in Chicago, for example, Facebook asserted its Potential Reach was approximately 4 times (400 per cent) higher than the number of real 18-34 year-olds with Facebook accounts in Chicago,” the complaint states. And in Kansas City, the complaint asserts, the number provided by Facebook was 200 per cent higher than the actual number of 18-to-54-year-olds with Facebook accounts in the area. What’s more, the court filing contends that former Facebook employees, described as confidential witnesses, have acknowledged that Facebook is fine with inflated numbers. The attorneys representing Singer and her biz, which supposedly spent over $14,000 on Facebook ads, are seeking class-action certification in order to represent other affected Facebook advertisers. According to the complaint, “a former Facebook employee who worked in the infrastructure/mapping team stated that those who were responsible for ensuring the accuracy of the Potential Reach at Facebook were indifferent to the actual numbers and in fact ‘did not give a sh–.'” They also said the “Potential Reach” statistic is “like a made-up PR number.”
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