A group of advertisers has sued Facebook claiming that the social networking giant was aware of the errors in ad-metrics that measured viewership of video ads on its platform.
After going through 80,000 pages of internal Facebook records that were obtained as a part of court proceedings, they found that that the company recognized the miscalculations in the year 2015.
In spite of that, Facebook allegedly hid the measurement miscalculations for more than a year before revealing it in 2016.
The advertisers have alleged that the company has engaged in unfair business conduct by showing inaccurate metrics that seriously overestimated the watch time of users on Facebook.
Citing the internal Facebook documents as evidence, the complaint further alleges that the miscalculation was far worse than what the advertisers were informed.
According to the complaint, if Facebook had immediately straightforwardly corrected the errors, advertisers would have seen a steep and sudden drop in their viewership stats. It would have caused advertisers to stop buying video advertising from the social media giant and resulted in major revenue loss.
Meanwhile, Facebook has stated in response:
“This lawsuit is without merit and we’ve filed a motion to dismiss these claims of fraud. Suggestions that we in any way tried to hide this issue from our partners are false.”
Facebook claims that it informed the customers just after the errors were discovered and updated their help center to explain the issue.
In a separate complaint filed another firm, Facebook faces allegations of misrepresenting advertisers’ estimated audience reach as well. But the company has denied these claims as well.