More than 311,000 Australian Facebook users can now apply for a portion of a $50 million compensation fund established by Meta. This fund represents the largest payout for a privacy breach affecting Australians. The deadline for claims is December 31, 2023, making timely action essential for eligible users.
The compensation stems from Meta’s involvement in the Cambridge Analytica scandal, a significant data breach that occurred in the 2010s. This breach involved the unauthorized harvesting of personal information from approximately 87 million Facebook profiles globally. The incident resulted in a landmark penalty of US$5 billion (around $7.7 billion) in the United States, alongside a US$725 million (approximately $1.1 billion) compensation scheme for affected American users.
In Australia, the Office of the Australian Information Commissioner conducted an investigation into the matter. This inquiry revealed that Cambridge Analytica utilized the “This Is Your Digital Life” personality quiz app to extract personal data. Although only 53 Australian users installed the app, a further 311,074 users, who were friends of those individuals, may also be affected due to potential data sharing.
In December 2024, the information commissioner announced a settlement with Meta that included an “enforceable undertaking,” which features the $50 million compensation program. Claims for compensation officially opened on June 30 and will remain available until the end of the year.
Eligibility Criteria for Claims
Individuals are eligible to apply if they meet specific criteria: they must have had a Facebook account between November 2, 2013, and December 17, 2015, and must have resided in Australia for over 30 days during this period. They must also either have installed the “Digital Life” app or have been Facebook friends with someone who did.
The claims process is managed by KPMG, a consulting firm contracted by Meta. Importantly, the costs associated with KPMG’s administration do not come from the $50 million fund. A dedicated website has been established for inquiries and to facilitate the claims process.
Meta has proactively notified potentially eligible Australian users through a message on Facebook, advising them of their potential entitlement to compensation. Users can follow a link to verify if they or their friends accessed the Digital Life app, which would allow for a faster claims process. Those who did not receive notification but believe they were affected can still file a claim using standard procedures, which require proof of identity and account details.
Claim Classes and Expected Payouts
Applicants must choose between two classes when making their claims, each with different requirements and potential payouts.
**Class 1** is the more complex option, where claimants may seek compensation for “specific loss or damage.” This requires detailed documentation of economic or non-economic losses, such as medical expenses incurred due to the data breach. The evaluation for these claims will be conducted individually, and there are no predetermined payout amounts.
**Class 2**, in contrast, simplifies the process, allowing claimants to seek compensation based on “generalized concern or embarrassment” resulting from the breach. This option requires only a statutory declaration asserting that the breach caused them genuine concern or embarrassment. All successful claimants in this class will receive the same amount after Class 1 payouts are determined.
According to Meta’s enforceable undertaking, KPMG has the authority to set a cap on payments to claimants. If funds remain after all claims are settled, the surplus will be directed to the Australian government’s Consolidated Revenue Fund. There is currently no predetermined cap on payments, and the exact amount allocated to Australian claimants versus the government remains uncertain.
Payments from the compensation fund are expected to commence around August 2026. Historical settlements from Meta in other regions have yielded modest payouts; for instance, recipients in the US have reported average amounts of approximately US$30 (around $45) each from the US$725 million compensation scheme.
The outcome in Australia will largely depend on the number of users who apply for compensation before the December 31 deadline. Experts like Graham Greenleaf, an honorary professor at Macquarie Law School, and Katharine Kemp, an associate professor at UNSW Sydney, emphasize the importance of user participation in determining the final payout amounts.
In conclusion, Australian Facebook users have a limited window to claim their share of the compensation fund, making it crucial for eligible individuals to act promptly and ensure their claims are submitted before the end of the year.
