Complaint to the Securities and Exchange Commission: Facebook's abuse of duplicate accounts was "widespread fraud." Hagen was charged in a disclosure complaint filed with the US Securities and Exchange Commission. "For years, Facebook has misled investors and advertisers about declining user numbers in important demographics, declining content production, and the actual number of recipients of 'reach and repeat' ads," the lawsuit says. p>
Because "Facebook's stock valuation is based roughly on its expectations of future advertising revenue," the complaint notes that "evidence" Facebook has provided past and present of repeated misconduct has violated US securities laws. Investors and potential investors, including ... through filing with the Securities and Exchange Commission, testimony in Congress, online statements and media stories. “Facebook provides key metrics, including content creation, to the wrong investors and advertisers. In its operating systems and growth in discrete users (particularly in high-value demographics), the complaint claims. (SUMA) that the matter has not been considered, and therefore the company is systematically using excessive advertisers by misrepresenting the number of users.
"Facebook is misusing duplicate accounts as a widespread scam against its advertisers and misreporting it to investors."
While Facebook has reported user growth to investors, the company "doesn't say insider it's a contraction." in an important anthropological database, including American teens and young adults. The company has also reduced content production per user in the long run.” Facebook internal
Hagen, with the help of Whistleblower Aid, filed eight complaints against whistleblowers, all of which were published in an article on CBS News yesterday. CBS: “Based on tens of thousands of internal Facebook documents that Haugen copied before he left the social media company in May.” Like the XCheck-related app, which allows 5.8 million VIPs, including celebrities, politicians and athletes, to avoid posting rules to most users.
Other complaints from Hagen claim that Facebook misled investors and the public on various issues.Problems such as Facebook's role in the January 6 uprising, the failure to remove most hate speech by Facebook, the damage Facebook is doing to mental health and the physicality of adolescents, activating Facebook in human trafficking, advertising on Facebook in the realm of misinformation and hate. Speech Facebook promotes “global divisions and racial violence.” Testimony online.
We reached out to Facebook today about the whistleblower complaint, and we will update it if you read We found this article. Response. In its latest quarterly revenue report, Facebook said it had 1.91 billion daily active users and 2.9 billion monthly active users in June, both up 7% from a year earlier.
Young Adults FB as "negative, fake and boring"
The complaint was cited in an internal Facebook report, which states: Since 2012/2013. Data science findings show that only users 25 years of age or older increase their Facebook usage. Adolescents' DAU continues to function, and adult DAUs (18 to 24) continue to decline.
Another internal history says that young people "want cheerful and motivating content, but find Facebook content negative, fake, and boring." The internal documents also indicate that the number of daily active users of teens decreased by 13% from 2019 to 2021, and during the pandemic the use of any group of Facebook sites increased, except for 23 and less, and it continues to decline. .
An internal document states that more than 15% of new teenage accounts were existing users creating a second account, a higher proportion than users. He acknowledged the problem of duplicate accounts, saying that "duplicate accounts may account for approximately 11% of monthly active users globally. But Facebook CEO Mark Zuckerberg claimed in a 2018 Revenue call that the company's MAU "refers to more dedicated individuals than active accounts, so it doesn't rule out cases where individuals have multiple active accounts in a single app." p>
Facebook CFO David Weiner in the same call, objected to Zuckerberg, acknowledging that "Facebook's MAU number counts multiple accounts for a single user if there are such accounts, and we would estimate that they display about 10% of the units MAU on Facebook as before. Major standards limitations are disclosed in our SEC files. Hagen's complaint also referred to a September 2017 article on AdWeek that said Facebook claimed it could reach more people in different age groups, as well as an article in November 2019 about the "fake Facebook number issue." Ads
"Facebook overuse of advertisers on a large scale" Large-scale fraud against its advertisers and misleading investors is a complaint. Note that Facebook offers "Access and Availability" tools that allow advertisers to count the number of users whose ads are shown. The person views the ad.
"By serving a lot of ads to users that advertisers didn't want to pay for, Facebook received huge fees from advertisers. When included alone and 63% in combination with age modeling. “
“After including SUMA accounting in audience size, we found that we estimate that 82% of current R&D revenue is less than 10% (while) 95% [current R&F revenue] is less than 16%.. the ratio goes down .
The whistleblower complaint ended with a request from the SEC for action:
The SEC is committed to enforcing laws that protect investors in public companies like Facebook. Facebook investors are paying attention to this inaccuracy, removing duplicate accounts and the number of related users for two reasons. First, if advertisers are aware of the differences, they will spend less on advertising, which will result in less ad revenue and less profit. Second, some investors simply do not want to invest in a company that is not growing (for example, daily and monthly active users) that has been represented and then distorted and removed.
According to the former employee, Facebook misled investors about reducing the number of users
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