Facebook suspends data firm in wake of privacy scandal

Cubeyou was misleading users by saying information it collected through quizzes was used in academic research

File - This Jan. 17, 2017, file photo shows a Facebook logo being displayed in a start-up companies gathering at Paris' Station F, in Paris.  Facebook is on the offensive to try to contain swirling concerns about how it protects the data of its 2.2 billion members. As CEO Mark Zuckerberg prepares to face Congress on Tuesday, April 10, 2018,  and the company rolls out new privacy rules, the social media juggernaut is facing the most serious challenge in its 14-year-history and seeking to maintain people’s trust and avoid a user exodus.(AP Photo/Thibault Camus, File)
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Facebook suspended another data firm after allegations surfaced that it may have improperly handled users’ information.

The social media company said it took action against Cubeyou pending an investigation. CNBC reported the data analytics company was misleading users by saying information it collected through quizzes was for academic research, when it was being shared with marketers.

"These are serious claims and we have suspended Cubeyou from Facebook while we investigate them," said Ime Archibong, vice president of product partnerships at Menlo Park, California-based Facebook. "If they refuse or fail our audit, their apps will be banned from Facebook."

Chief executive Mark Zuckerberg is expected to testify before Congress this week, as lawmakers seek answers about users' privacy on the site. Facebook has lost billions in market value since a whistle-blower revealed last month that political firm Cambridge Analytica was misusing consumers' data. Last week, Facebook said that as many as 87 million users may have been affected by the Cambridge Analytica case.

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Facebook reached the decision to suspend Cubeyou after CNBC contacted the company with the allegations. CNBC reported the suspension earlier on Sunday.

Cubeyou's website claims it has more than 10 million panelists contributing consumer opinions, interests and traits throughout the US and that it is used by more than 1,500 marketers. The company, whose press releases have said it is based in San Francisco with offices in Milan, did not respond to request for comment.