Facebook sued for using VPN to spy on users

Facebook dark mode
(Image credit: Shutterstock)

Facebook is being sued by Australia's Competition and Consumer Commission (ACCC) over how the company allegedly used its Onavo VPN to spy on users for commercial purposes during 2016 and 2017.

The social media giant first acquired the VPN service Onavo back in 2013 for close to $200m. Facebook then released an app called Onavo Project which was subsequently banned from Apple's App Store for collecting and reporting usage data.

In its case, the ACCC is accusing the company of false, misleading or deceptive conduct toward thousands of Australian consumers who believed the personal data they sent through its Onavo Protect app would be kept private and not used for any other purpose.

ACCC chair Rod Sims provided further insight on how Facebook used the app for its own commercial gain in a statement, saying:

“Through Onavo Protect, Facebook was collecting and using the very detailed and valuable personal activity data of thousands of Australian consumers for its own commercial purposes, which we believe is completely contrary to the promise of protection, secrecy and privacy that was central to Facebook’s promotion of this app. Consumers often use VPN services because they care about their online privacy, and that is what this Facebook product claimed to offer. In fact, Onavo Protect channelled significant volumes of their personal activity data straight back to Facebook.”

Spying on users

According to the ACCC, Facebook misled Australian consumers by misrepresenting the functions of its free-to-download Onavo Protect app between February, 1 2016 and October 2017. The regulator is currently seeking declarations and pecuniary penalties through its case.

In a statement to TechCrunch though, a Facebook spokesperson explained that the company was clear about the information collected when consumers downloaded Onavo Protect, saying:

“When people downloaded Onavo Protect, we were always clear about the information we collect and how it is used. We’ve cooperated with the ACCC’s investigation into this matter to date. We will review the recent filing by the ACCC and will continue to defend our position in response to this recent filing.”

Facebook shuttered its Onavo Protect app last year following backlash regarding how it had used the VPN app to spy on users. Based on internal company documents made public by the UK parliament in 2018, the social media giant used Onavo charts to gain insights into which third party apps users were downloading to their devices.

WhatsApp is a great example of this as data from Onavo showed that the messaging service was a competitive threat to Facebook’s Messenger app. Shortly after learning this though, Facebook spent $19bn to acquire WhatsApp in 2014.

We'll have to wait and see whether or not the ACCC's lawsuit is successful but this likely isn't the last time that Onavo Protect will be used against Facebook in a legal setting.

Via TechCrunch

Anthony Spadafora

After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home. 

Latest in VPN
ExpressVPN mobile app and Aircove
ExpressVPN ‘reduces workforce’ for the second time in two years
Neon blue email symbols on a black background
Why am I suddenly getting so many spam emails?
A computer file surrounded by red laser beams
Cover your tracks: the risk of sending unencrypted files
Using an Amazon Fire Stick on a Smart TV
How to use a VPN with Fire Stick
Close up of PS5 DualSense controller leaning on a PS5
5 reasons your PS5 needs a VPN
Harry Halpin, CEO and co-founder of Nym Technologies, and Chelsea Manning, Nym Technlogies' security consultant, on stage at the Frontline Club in London during the NymVPN launch on March 13, 2025.
NymVPN is now live – here's everything you need to know
Latest in News
Stability AI 3D Video
Stability AI’s new virtual camera turns any image into a cool 3D video and I’m blown away by how good it is
The Google Wallet app with a mode for kids shown on-screen.
Google Wallet’s new kid-friendly payment system is a win for parents
A man holds a smartphone iPhone screen showing various social media apps including YouTube, TikTok, Facebook, Threads, Instagram and X
A worrying Apple Password App vulnerability reportedlyleft users exposed for months
Google Pixel 9a
Google is delaying the Pixel 9a to fix a mystery “component quality issue”
The bottom left corner of an Android phone, showing the Phone, Messages, Google icons and Google Search bar
Google Messages remote delete will soon save you from texting embarrassment – and here's how it works
ExpressVPN mobile app and Aircove
ExpressVPN ‘reduces workforce’ for the second time in two years