HUD Says Facebook Real Estate Ads Violate the Fair Housing Act

Social media giant, Facebook has been by the U.S. Department of Housing and Urban Development (HUD) for violating the Fair Housing Act by encouraging, enabling, and causing housing discrimination through the company’s advertising platform, according to TIME.

HUD alleges that Facebook unlawfully discriminates based on race, color, national origin, religion, familial status, sex, and disability by restricting who can view housing-related ads on Facebook’s platforms and across the internet.  Further, HUD claims Facebook mines extensive data about its users and then uses those data to determine which of its users view housing-related ads based, in part, on these protected characteristics.

Facebook allegedly allowed advertisers to exclude parents; those who are non-American-born; non-Christians; and those interested in Hispanic culture, “deaf culture,” accessibility for the disabled, countries like Honduras or Somalia, or a variety of other topics.

The Fair Housing Act prohibits discrimination in housing and in housing-related services, including online advertisements, based on race, color, national origin, religion, sex, disability, or familial status. 

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

The civil charges filed by the Department of Housing and Urban Development could cost the social network millions of dollars in penalties. But more than that, they strike at the heart of Facebook’s business model — its vaunted ability to deliver ads with surgical precision to certain groups of people and not others.

The case will be heard by an administration law judge unless HUD or Facebook decides to move it to federal court.