Meta settles Israeli privacy lawsuit for $338,000
Facebook parent company accused of misusing phone numbers provided for security.
Technology giant Meta, which operates Facebook and Instagram, will transfer approximately $338,000 to the Israel Class Action Fund as part of a settlement in a class action lawsuit filed against the company in the Central District Court in Lod.
The lawsuit alleged that Meta collected and used phone numbers provided for two-step verification for other purposes. The plaintiffs and Meta reached a settlement without Meta admitting the claims, and this week, the Central District Court approved the agreement.
The applicants, represented by attorneys Adam Levin, Roy Bitton, and Jonathan Rapoport, argued in their amended class action request that Meta improperly used Facebook users’ phone numbers, including making them available to advertisers despite being provided solely for security purposes.
Meta denied the allegations, arguing that users had consented to providing their phone numbers and that the company’s actions aligned with user expectations. At the court’s recommendation, the parties entered mediation, which led to the settlement.
As part of the agreement, Meta has since revised its disclosures regarding how it uses phone numbers provided for two-step verification. Now, if a user provides a unique phone number for this security feature, the number will only be used for two-step verification and for safety, security, and integrity purposes. It will not be used to personalize advertisements or member offers. Additionally, a phone number provided for two-step verification will only be visible to the user.
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Attorneys Roy Bitton (from right), Adam Levin, and Jonathan Rapoport.
(Photo: Mika Solomon)
The parties also agreed that the settlement funds should be transferred to the Israel Class Action Fund, as distributing the amount directly to affected users would not be practical.
The court approved the settlement this week, ruling that it was fair and reasonable. The payment will be made by Meta Platforms, Inc., formerly Facebook, Inc. Meta was represented by attorneys Gil Orion and Yael Rimmer.
The Rapoport Levin Bitton law firm, which represented the applicants, stated: "The settlement agreement strengthens the right to privacy for every Israeli user and clarifies that these platforms must ensure that user information is handled with respect for privacy and with proper consent."
