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Saturday, November 2, 2024

Facebook sued by companies that say it favors larger advertisers

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BENTON, Ark. (Legal Newsline) – Three Arkansas businesses allege that Facebook favors large marketers over smaller ones when it comes to advertising.

American Tiger Firearms LLC, Farm Diva LLC and First Shot LLC, on behalf of themselves and all others similarly situated, filed a complaint on May 1 in the Circuit Court of Saline County, Arkansas against Facebook Inc. and Facebook Payments Inc. seeking declaratory judgment.

The plaintiffs allege they use Facebook to advertise their retail stores, merchandise offerings, gun safety classes, training classes and more. They allege they always follow the defendants' policies and never sell firearms on Facebook, but the defendants block their advertising on the Facebook apps. They allege when they appeal the decision, they are only offered an automatically generated statement that states the advertised content does not conform to the commercial policies.

"While the defendant denies the plaintiffs and class members access to their respective networks on the Facebook apps, defendant does not interrupt access to the same services to defendant's accounts which compete with the plaintiffs and class members," the suit states. "Many of the competing marketers whose advertising is allowed by the defendant are larger than the plaintiffs and class members."

The plaintiffs are seeking trial by jury, class action status be maintained, declaratory judgment against the defendant, attorneys’ fees and other relief deemed fit. They are represented by William P. Creasman and David Slade of Carney Bates & Pulliam PLLC in Little Rock, Arkansas.

The defendants removed the case to the U.S. District Court for Eastern District of Arkansas on June 5.

U.S. District Court for Eastern District of Arkansas case number 4:19-CV-00388

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