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Facebook says it's suing South Korean social media analytics company Rankwave – CNET

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Angela Lang/CNET

Facebook said Friday that it's suing Rankwave, a South Korean company that analyzes social media users' data for marketing purposes.

"Facebook was investigating Rankwave's data practices in relation to its advertising and marketing services," Facebook said in a statement. "Rankwave failed to cooperate with our efforts to verify their compliance with our policies, which we require of all developers using our platform."

Facebook alleges in the lawsuit -- filed Friday in a California superior court in San Mateo County -- that Rankwave breached a contract with the social network and violated a California law that prohibits unfair, unlawful or fraudulent business acts. Since 2010, Rankwave operated at least 30 apps on the Facebook platform and used data tied to those apps to create and sell advertising and marketing tools, which violated Facebook's rules. Facebook also claims that Rankwave wasn't responding to questions it had during an investigation into the company's data practices.

Rankwave operated different types of apps that businesses and consumers used. Rankwave's apps had to obtain user consent before they could access any Facebook data.

A South Korean department store, tourism organization and baseball team used a Rankwave app to analyze and track information on their Facebook pages. A Facebook page is a public profile created by businesses, organizations and public figures.

Rankwave also had an app called the "Rankwave app" that allowed users to calculate their "social media influencer score" by analyzing how many people interacted with a Facebook post. That app is no longer on the Facebook platform as of March 2018. 

Facebook started investigating Rankwave in June 2018 and discovered the company was violating its rules by using data from Facebook pages to provide consulting services to advertisers and marketers. 

"To date, Rankwave has not participated in our investigation and we are trying to get more info from them to determine if there was any misuse of Pages data," a Facebook spokesperson said in a statement.

The social network also tried to find out if Rankwave was also using user data to provide marketing and advertising services but the company wasn't responding to its questions.

Facebook suspended apps and accounts tied to Rankwave, but didn't share which ones. Facebook didn't respond to questions about what type and how much user data may have been gathered by Rankwave.

Rankwave didn't immediately respond to a request for comment. 

Facebook has faced a series of privacy scandals after revelations surfaced last year that UK political consulting firm Cambridge Analytica harvested the data of up to 87 million users without their consent.

Originally published May 10, 4:44 p.m. PT
Update, 6:07 p.m. PT: Includes background from lawsuit and statement from Facebook. 

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