Meta Platforms, Inc (NASDAQ:META) has reportedly agreed to pay $1 million and implement significant reforms in its advertising system in Israel following a settlement filed in the District Labor Court.
The settlement addresses allegations of discriminatory job advertising practices on its platform, which allowed employers to restrict job ads based on age and gender, Globes reports.
The case began in September 2021 when Ya'ala Lev, a 54-year-old marketing professional, discovered she was excluded from many job ads on Facebook.
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An investigation revealed that Facebook's campaign management system enabled employers to narrowly target candidates by age, gender, and location, leaving entire groups, particularly those over 40, unseen by these ads.
High-profile employers, including Israel Electric Corporation and the Bank of Israel, were found using the platform exclusively to target younger candidates. The Equal Employment Opportunity Commission intervened, citing the matter as critical to employment equality with significant societal implications.
Under the settlement, Meta will pay $1 million to the Israeli Ministry of Justice's class actions fund and enforce critical changes to its advertising system in Israel, per the report. Advertisers in the country must reconfirm their adherence to anti-discrimination policies. Additionally, Meta will publish guidelines in Hebrew detailing how to post inclusive job ads and emphasizing the legal obligation to ensure equal access for all candidates.
Meta held $70.9 billion in cash and equivalents as of September 30, 2024.
The Facebook parent remains embroiled in several antitrust lawsuits for allegedly exploiting its influence to stifle competition. In November, the European Commission fined the company $841 million for linking its classified ads service, Facebook Marketplace, with its social media network, Facebook.
In March, European consumer organizations called out Meta for its surveillance-based advertising system, violating user privacy and data protection laws.
Price Action: META stock is down 0.91% at $602.25 at last check Thursday.
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