Facebook Inc (NASDAQ:FB) has blocked a vehicle insurance company known as Admiral from using Facebook profiles to determine whether a person is eligible for a discount.
The Insurance company was carrying out a trial through which it wanted permission to look at the posts and likes of motorists to determine whether individuals are safe drivers. Using this criterion, a young driver whom the company would consider as low-risk would receive a discount. Facebook, however, disputed this method and stated that it would not allow Admiral to determine discounts based on posts and likes on the social media platform.
The social media giant prevented the insurance firm from going through with the plan on the day of its launch. Facebook stated that it will help users on the social platform to log into the Admiral app through the verification process. The social media giant, however, stated that it would not let Admiral go through with the plan to determine eligibility through posts and likes.
“Protecting the privacy of the people on Facebook is of utmost importance to us. We have clear guidelines that prevent information being obtained from Facebook from being used to make decisions about eligibility,”pointed out a spokesperson from Facebook.
The insurer had announced on Wednesday that it was planning to introduce a new insurance offer, especially for young first-time drivers. Through the deal, they would receive reduced rates if the insurance company received access to their Facebook profiles. The idea behind this is that there is a link between personality and how people drive. Unfortunately for Admiral, Facebook is not pleased with the idea due to its potential impact on personal data.
“We have made sure anyone using this app is protected by our guidelines and that no Facebook user data is used to assess their eligibility,” Stated Admiral.
Open Rights executive director stated that Facebook was sensible to resist such activities because it does not want users to feel inhibited.
Facebook stock closed the latest trading session at $127.17.