Facebook Users Affected by Data Breach Eligible for Compensation, German Court Says

A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado
A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado
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Facebook Users Affected by Data Breach Eligible for Compensation, German Court Says

A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado
A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado

A German court said on Monday that Facebook users whose data was illegally obtained in 2018 and 2019 were eligible for compensation.

The Federal Court of Justice (BGH) ruled that the loss of control over one's data online was grounds for damages without having to prove specific financial losses.

Thousands of Facebook users in Germany are demanding compensation from parent company Meta for insufficient protection of their data after unknown third parties were able to access user accounts by guessing phone numbers.

The claims, which stem from a data breach in 2021 of information gathered through the Facebook friend search feature, had been dismissed in principle by a lower court in Cologne and will now have to be re-examined.

The plaintiff had demanded damages of 1,000 euros ($1,056), but the BGH said that around 100 euros would be appropriate with no proof of financial loss.

According to the Karlsruhe-based court, the lower court must determine whether Facebook's terms of use were transparent and comprehensible, and whether users' consent to the use of their data was voluntary.

Meta previously refused to pay compensation on the grounds that those affected had not been able to prove any concrete damages.

A Meta spokesperson said the BGH's ruling was "inconsistent with the recent case law of the European Court of Justice, the highest court in Europe."

"Similar claims have already been dismissed 6,000 times by German courts, with a large number of judges ruling that no claims for liability or damages exist," the spokesperson said. "Facebook's systems were not hacked in this incident and there was no data breach."

Roughly six million people in Germany were affected by the leak.



Tiktok Makes AI Driven Ad Tool Available Globally

A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/File Photo/File Photo
A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/File Photo/File Photo
TT

Tiktok Makes AI Driven Ad Tool Available Globally

A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/File Photo/File Photo
A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/File Photo/File Photo

TikTok on Thursday began letting all marketers on its platform use an artificial intelligence-powered tool for generating marketing clips, becoming the latest platform to let advertisers tap into the technology.
The news came with word that Getty Images will make its stockpile of pictures and video available to TikTok's AI‑powered video generation tool -- called Symphony Creative Studio, AFP said.
Brands will be able to use Getty's licensed images and videos to create AI-generated ads, including marketing messages featuring characters resembling real people, according to the companies.
Getty and TikTok did not disclose financial terms of the deal.
The Getty Images integration is part of an expansion of TikTok tools for advertisers and content creators, according to the Chinese-owned app.
"We aim to empower advertisers and help them connect with their communities with the power of generative AI," TikTok head of creative product monetization Andy Yang said in a joint release.
AI-driven tools with the potential to help make money have been eagerly sought since generative AI caught the world's attention with OpenAI's release of ChatGPT in late 2022.
The technology can produce videos, pictures or written works quickly based on demands expressed in everyday language.
Questions have arisen, however, regarding how companies investing billions of dollars in AI will profit from it.
Last month, online advertising titans Amazon, Google, and Facebook-parent Meta launched tools putting AI to work helping create ads for their platforms.
"With the surge in demand for authentic storytelling in advertising, the need for captivating, high‑quality content to convey these stories effectively to audiences has never been greater," Getty Images senior vice president of global strategic partnerships Peter Orlowsky said in the joint release.
Generative AI models trained on images, articles and other data found online have elated some users, while arousing ire in authors, artists and others who believe their creations are being absorbed without them being asked or compensated.
Publications such as the New York Times have filed lawsuits to defend their content, while some news organizations have opted to make licensing deals.