A newly filed lawsuit alleges that Facebook misled advertisers by inflating the “potential reach” figures for ad campaigns — the total audience that views ads on the platform.
The East Bay Times reports that Facebook is facing a lawsuit which alleges that the website claimed to have far larger audience sizes in U.S. cities and states than it actually does.
Singer claims in her lawsuit that Facebook’s potential reach figures for users aged 18-34 in all 50 U.S. states actually exceeded the number of platform users in that demographic.
The lawsuit states: “Facebook’s misrepresentation of the Potential Reach of its advertisements induced advertising purchasers, including Plaintiffs, to continue purchasing advertisements, because purchased believed that more people could potentially be reached by their advertisements than possibly could have been.”
What Singer discovered was that in Chicago, for example, there were approximately 808,000 U.S. resident ages between 18 and 34 according to U.S. census data, but Facebook calculated the potential reach for Chicago residents at around 1.9 million.