Facebook Senior Executive Had Expressed Concern Over Exaggeration Of Advertisement Reach: FT

Facebook Inc FB senior advertising executive Carolyn Everson had expressed concerns over the claim of overstatement of its advertisement reach against the company triggering a 2018 California lawsuit, the Financial Times reports.
A small business owner alleged the Facebook executives of being privy to the deceptive potential reach figure to preserve the company’s bottom-line.
Facebook has defended the numbers as estimates. The advertisers paid for actual clicks and impressions instead of the potential reach of the ad, justified Facebook.
However, Everson’s 2017 email stated otherwise regarding the potential reach metric. In one of her internal emails, the Facebook product manager said, “revenue we should have never made given the fact [the metric is] based on wrong data.” Several other employees followed suit.
The claims will prove costly for Facebook when the company was already battling allegations regarding the 2016 Presidential election tampering via fake accounts. Facebook has refuted the allegations.
A 2019 Financial Times investigation detected similar inconsistencies in Facebook’s ads manager despite incorporating changes to its potential reach definition earlier that year.
Price action: FB shares traded higher by 0.23% at $301.79 on the last check Monday.