October 16, 2018
  • Company didn’t disclose video advertising error until 2016
  • Fraud allegations are added to lawsuit in Oakland, California

Facebook Inc. knew in early 2015 that it misled advertisers about the average time users spent viewing online video clips -- and then lied about it, according to a lawsuit.

The owner of the world’s largest social network acknowledged in September 2016 that it had inflated the metric for marketers, and said it fixed its calculations. Crowd Siren, the online marketing agency that sued over the misrepresentations, now claims that Facebook knew as early as 2015 that it was over-reporting the figures.

Crowd Siren added fraud claims and a request for punitive damages against the company in an amended complaint filed Tuesday in federal court in Oakland, California.

. . .

Facebook faces separate allegations in a complaint filed in August that it misrepresents advertisers’ estimated audience reach. That complaint was brought by Cohen Milstein Sellers & Toll PLLC, one of the law firms that drafted Tuesday’s filing. Facebook has denied the claims.

The complete article can be accessed here.