Australian Competition & Consumer Commission takes Facebook Inc to Federal Court over allegedly misleading and deceptive conduct, December 2020

 

Australian Competition & Consumer Commission, media release, 16 December 2020:

ACCC alleges Facebook misled consumers when promoting app to 'protect' users' data

The ACCC has instituted proceedings in the Federal Court against Facebook, Inc. and two of its subsidiaries for false, misleading or deceptive conduct when promoting Facebook’s Onavo Protect mobile app to Australian consumers.

Onavo Protect was a free downloadable software application providing a virtual private network (VPN) service.

The ACCC alleges that, between 1 February 2016 to October 2017, Facebook and its subsidiaries Facebook Israel Ltd and Onavo, Inc. misled Australian consumers by representing that the Onavo Protect app would keep users’ personal activity data private, protected and secret, and that the data would not be used for any purpose other than providing Onavo Protect’s products.

In fact, the ACCC alleges, Onavo Protect collected, aggregated and used significant amounts of users’ personal activity data for Facebook’s commercial benefit. This included details about Onavo Protect users’ internet and app activity, such as records of every app they accessed and the number of seconds each day they spent using those apps.

This data was used to support Facebook’s market research activities, including identifying potential future acquisition targets.

“Through Onavo Protect, Facebook was collecting and using the very detailed and valuable personal activity data of thousands of Australian consumers for its own commercial purposes, which we believe is completely contrary to the promise of protection, secrecy and privacy that was central to Facebook’s promotion of this app,” ACCC Chair Rod Sims said.

“Consumers often use VPN services because they care about their online privacy, and that is what this Facebook product claimed to offer. In fact, Onavo Protect channelled significant volumes of their personal activity data straight back to Facebook.”

“We believe that the conduct deprived Australian consumers of the opportunity to make an informed choice about the collection and use of their personal activity data by Facebook and Onavo,” Mr Sims said.

The Onavo Protect website stated that the app would “save, measure and protect” users’ mobile data, while advertisements on Facebook’s website and app included statements such as “Keep it secret. Keep it safe… Onavo Protect, from Facebook”.

The ACCC is seeking declarations and pecuniary penalties.

The attached document below contains the ACCC’s initiating court document in relation to this matter. We will not be uploading further documents in the event this initial document is subsequently amended. 

Concise statement 

ACCC v Facebook Inc & Ors_ Concise Statement ( PDF 2.34 MB ) 

Background 

US-based Facebook, Inc. owns global social media and private messaging platforms including Facebook, Instagram and WhatsApp. 

US-based Onavo, Inc. and Onavo Mobile Ltd, based in Israel, were mobile analytics companies that were acquired by Facebook in October 2013. After the acquisition Onavo Mobile became Facebook Israel Ltd. 

Apple removed Onavo Protect from its App store in 2018 for non-compliance with its developer terms such as, among other things, collecting information about other apps installed on a user’s device for the purposes of analytics. It was later also removed from the Google Play store and was discontinued in 2019. 

The ACCC’s Digital platforms inquiry final report examined a range of issues involving digital platforms and consumers, including concerns about Onavo Protect and how its users’ data was being collected and used. 

In December 2020, in an unrelated action, the US Federal Trade Commission (US FTC) brought proceedings against Facebook, alleging that the company is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct. The US FTC alleges that Facebook engaged in a systematic strategy including its 2012 acquisition of Instagram and 2014 acquisition of WhatsApp, and the imposition of anticompetitive conditions on software developers to eliminate threats to its monopoly. The court documents filed by the US FTC refer to Facebook’s use of Onavo Protect data to identify future acquisitions as part of the allegation that Facebook is illegally maintaining a monopoly.

Liberals caught behaving badly - yet again. WARNING: Contains offensive comment

Apparently some NSW Young Liberals thought that behaving like sexual predators was a fun way to campaign in the lead up to the March 2019 state election.

That is until the matter came to the notice of the voting public and their party superiors decided it wasn't funny anymore because it could cost them votes.

The Sydney Morning Herald, 17 February 2019:

Four NSW Young Liberals have been kicked out of the party for making lewd and derogatory comments about women in an online chat group meant for election campaigning.

The four used the dating app Tinder to connect with women who they hoped to convince to vote Liberal and then made sexually explicit comments about them in a Facebook group.

In one instance, one of the Young Liberals who works for a senior NSW Liberal MP, posted a photo of a woman he was chatting with on Tinder, describing her as a “potato".

"A potato that can vote," the Young Liberal wrote.

                           

“Then root and boot her and leave some HTVs (how to vote cards). F..k I could go some fries right now."

Other comments in the chat include references to a woman voting "blue", the Liberal colour.

"I like blue but don't give me blue balls," another male member of the group wrote.

One of the men replied: "I don't think he wants to bang a potato".

Several female Young Liberals in the group chat were horrified by the comments and pleaded with their male colleagues to end the discussion.

"Anytime would be a good time to stop," one woman in the group wrote.

Really disappointing to see so many nasty comments about a woman who you don't know."

Another said: “People wonder why women don’t want to join the Liberal Party."

One of the men responded: "Sorry to have started it, just thought it was a fun way of campaigning."

The group, set up when several Young Liberals were helping in last year’s South Australian election, had 17 members, including NSW Young Liberals president Harry Stutchbury.

Other members in the group hold executive positions with the Young Liberals and some work for senior NSW ministers and MPs. One of the four who was disciplined works for a NSW Nationals minister.

Mr Stutchbury, who did not make any comments in the chat group, said he received a complaint from women the morning after the discussion.

He said he told the four men involved that their behaviour was not acceptable but he took no further action and it was not reported to the party's head office.

The first Liberal Party officials knew of the online chat was when they were alerted to it by The Sun-Herald, despite the comments being made almost 12 months ago.

"I welcome the decisive action the party has taken," Mr Stutchbury said.

The four received the maximum available penalty late on Friday and were suspended from the party for six months after officials saw the contents of the chat group…..

The Sydney Morning Herald, 17 February 2019:

Two NSW Young Liberals who were kicked out of the party after making lewd comments about women have been sacked from their state government jobs.

The Liberals, one who worked for Kiama MP Gareth Ward and the other for Tourism Minister Adam Marshall, no longer have jobs with the government, sources have confirmed.

How can you spot an uncharitable charity?

On 3 July 2018 Liberal MP for Warringah and former sacked Australian prime minister Tony Abbott gave the 2018 Bob Carter Commemorative Lecture  titled “Time to pull out of Paris” at an Australian Environment Foundation event at CQ Functions in Melbourne.

So who and what is the Australian Environment Foundation (AEF)?

AEF is registered as a charity and its current board comprises:

BOSTOCK, THOMAS Chairperson

HILL, JOANNA Director

MORAN, ALAN Director

OXLEY, ALAN Director

QUIRK, THOMAS Director

RAE, JEFFREY Director

RHEESE, WILLIAM Director

RIDD, PETER Director

Its address is 19 Robinson Rd, Hawthorn, VIC 3122.

According to the Australian Business Register as at 4 July 2018, AEF business names are Murray Darling Alliance, Listentous and Australian Climate Science Coalition and its trading name is Australian Environment Foundation Ltd.

The foundation has no employees and is allegedly run by up to 10 volunteers.

AEF has no income except donations and in the 2016 financial year these donations totalled $1,175.

The AEF reported to the charity commission that its charity work consisted of updating the AEF website, sending out regular newsletters to AEF members on current environment issues, and on consequent benefits or costs of these issues, as well as holding public meeting with highly qualified speakers. However, although it spent $8,929 on these activities in 2013-14, it spent a mere $667 in 2014-15 and no money at all in 2015-16.

One has to suspect that the Institute of Public Affairs (IPA) may now be picking up the tab for any outlays on newsletters, given AEF's close association with this far-right pressure group.

Venue hire and other expenses related to its "public meetings" appear to be picked up by corporate sponsors such as Bayer Crop Science and Monsanto in the past.

The original AEF website can be found at https://web.archive.org/web/20170620125239/http://aefweb.info/ where its right wing ratbaggery was on full view.

According to the latest version of its website:

The Australian Environment Foundation (AEF) is a non-profit, membership-based organisation that seeks to protect the environment, while preserving the rule of law, property rights, and the freedom of the individual. 

We take an evidence-based, solution-focused approach to environmental issues.    

While it may be true that "We are all environmentalists now", the great majority of Australians have little or no say in the environmental policies being put to governments – federal, state or local.  These policies are almost exclusively the domain of a tight network of conservation groups ensuring one view, and one view only, is put forward.   

The AEF is a different kind of environment group, caring for both Australia & Australians.  

   

So what is this difference it speaks about?

Here is part of the answer.

Source Watch as at 4 July 2018:

The Australian Environment Foundation is a front group founded by the Institute of Public Affairs (IPA), a conservative Melbourne-based think tank.

The director of the environment unit of the IPA, Jennifer Marohasy was the founding Chairwoman and is listed as a Director in the organisation's documents with the Australian Securities and Investment Commission (ASIC). Mahorasy is also the listed registrant of the group's website, although the address and phone number for the website registration are identical to the address and phone number for the Victorian office of the logging industry front group, Timber Communities Australia. [1] [2]

In July 2005, the month after AEF's official launch, it was announced that former television celebrity Don Burke had been appointed chairman. [3]

ASIC documents also listed Mike Nahan, the former Executive Director of the IPA, as one of the other founding directors. The documents also listed AEF's registered place of business as the IPA office. (Nahan was ED of the IPA until mid-2005). Pdf copy of ASIC registration - 11kb

In a column by Nahan in the Herald-Sun, he described AEF as "pro-biotechnology, pro-nuclear power, pro-modern farming, pro-economic growth, pro-business and pro-environment." [4]

AEF managed to jump the queue for Deductible Gift Recipient (DGR) Status awarded to not for profit charities who’s purpose is to help save the environment. This status was awarded by the Department of Environment and Heritage (DEH) and approved by the Federal Liberal Environment Minister. DGR Status entitles donors to a tax deduction at their marginal rate of tax for every dollar donated. The head of the AEF admitted that it is a group set up to protect timber interests and stop resources being taken away from the industry in an interview on ABC Radio station Triple J's Hack program.

History

The AEF was formally launched on World Environment Day (June 5 2005) in the northern New South Wales town of Tenterfield. "This new group will be vastly different to the established environment organisations that have had the ear of governments for some time. The AEF’s focus will be on making decisions based on science and what is good for both the environment and for people," the group stated in its press release.[5]

The formation of the AEF was first mooted at the 'The Institute of Public Affairs Eureka Forum' organised in December 2004 by the Institute of Public Affairs.

The Australian Environment Foundation was registered by Australian Securities and Investment Commission (ASIC)as a business in February, 2005. Its formation was also announced during the May 2005 Annual conference in Launceston of Timber Communities Australia, a timber industry front group.

AEF was officially launched on World Environment Day, 5th June, 2005. Jennifer Marohasy, who is the IPA's environment director, is a key player. On her blog Marohasy boasted that "The Australian Environment Foundation (AEF) has just formed and embraced the following 6 values based on my five principles." [6]

Reporting on the AEF's launch, the Melbourne broadsheet newspaper, 'The Age' reported that Marohasy is the group’s chairwoman. "Dr Marohasy said she acted as the group's leader as an individual and not part of the IPA," the Age reported. [7]

The launch was covered on Michael Duffy's conservative ABC radio show, ‘Counterpoint’ on the 6th of June in a story called ‘Putting People First’. Ironically, this phrase was the name of a (now defunct) wise-use group that operated in the US. The piece is on the ABC website. [8]

via @simonahac, 3 July 2018

According to one of the original AEF directors Max Rheese; AEF and IPA members share common values.

The AEF inaugural board members were drawn from the Institute of Public Affairs, Landholders Institute, Timber Communities Australia and the  Bush Users Group.