In a case brought by the ACCC, the Federal Court ordered two subsidiaries of social media behemoth Meta, Facebook Israel and Onavo Inc., to pay $10 million each for engaging in conduct that was likely to mislead and violate Australian Consumer Law.

The court ruled that by failing to adequately disclose that users' data would be used for purposes other than providing Onavo Protect, including Meta's commercial purposes, the two companies engaged in conduct that was likely to mislead the public in advertisements for the Onavo Protect app.

Between February 2016 and October 2017, Australian users installed Onavo Protect, a free virtual private network (VPN) service app, more than 270,000 times.

“Use a free, fast and secure VPN to protect personal information” and “Helps Keep You and Your Data Safe” were phrases used to promote Onavo Protect in Google and Apple App Store listings.

Onavo and Facebook Israel shared anonymized and aggregated user activity data with Meta (then Facebook Inc.) for commercial gain.

We took this case because many consumers are concerned about how digital platforms capture, store, and use their data. "We believe Australian consumers should be able to make an informed choice about what happens to their data based on clear, non-misleading information," said ACCC Chair Gina Cass-Gottlieb.

Meta received anonymized and aggregated data about users' internet and app activity, including which apps they used and how long. This supported Meta’s market research.

Facebook Israel and Onavo submitted to the Court that the App Store listings indicated that Onavo Protect users' data would only be used for the VPN. Onavo Protect's Australian users' online activity data was used as a "business intelligence tool" but not mentioned in the listings.

“In the case of the Onavo Protect app, we were concerned that consumers seeking to protect their privacy through a virtual private network were not clearly told that in downloading and using this app they were actually facilitating Meta’s commercial use of their data,” Ms. Cass-Gottlieb said.

Facebook Israel and Onavo also consented to the declarations and costs order, paid a contribution to the ACCC's costs, and made joint penalty submissions.

For alleged false, misleading, or deceptive conduct when promoting its Onavo Protect mobile app to Australian consumers, Facebook Inc. (now known as Meta Platforms, Inc.) and two of its subsidiaries, Facebook Israel Ltd. and Onavo, Inc., were brought before the Australian Competition and Consumer Commision (ACCC) in December 2020.

Facebook, Instagram, and WhatsApp are just a few of the international social media and private messaging services owned by Meta Platforms Inc. Following settlement discussions between the ACCC and the other parties based on knowledge of Meta's role in the conduct, the case against Meta was dismissed by the Court.

Facebook Israel and Onavo are subsidiaries of Meta that are indirectly owned at 100%. Onavo Protect was created and supplied by both, and they were also in charge of the app's listings in the Google and Apple App Stores.

Facebook bought the mobile analytics firms Onavo, Inc., based in the US, and Onavo Mobile Ltd., based in Israel, in October 2013. Following the acquisition, Facebook Israel Ltd. replaced Onavo Mobile.

Onavo Protect was advertised as a VPN service and, for some customers, as a data management service. To ensure secure, private transmission of a user's app and web traffic, a VPN employs encryption and other security measures.

From February 2016 to February 2019, Australian users could download the Onavo Protect app, and the service became operational in December 2016. Service was terminated in May 2019.

To ensure secure, private transmission of a user's app and web traffic, a VPN employs encryption and other security measures.

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