Facebook Sued For Terminating Marketing Platform’s Access 09/23/2019

Sep 20, 2019 | Social Media Marketing | 0 comments

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Stackla, a marketing platform that curates user-generated content, alleges in a new
lawsuit that its accounts with Instagram and Facebook were wrongly terminated.

“Stackla is a good actor in the marketplace, but became a casualty of defendants’ relentless
scorched-earth approach to belated reputation protection,” Stackla alleges in a complaint filed Thursday in San Francisco.

“In the wake of the Cambridge Analytica scandal and
fueled by state and federal law enforcement antitrust investigations, a reinvigorated Federal Trade Commission investigation, and Congressional inquiries, Facebook and Instagram recently have begun
purging their platforms of companies, at least as to Stackla, without any rhyme or reason and in violation of their good-faith partnerships and agreements,” the company writes.

The
company, which says most of the material it curates comes Facebook and Instagram, alleges its accounts were shut down in late August due to the erroneous perception that it was “scraping”
data. Stackla says its business will be destroyed if its accounts aren’t restored.

“Stackla respects the rights of social media users who create content and facilitates a process to help
its clients acquire the rights to content so it can be used by its clients for marketing,” the company writes.

Stackla also says it became an official Facebook marketing partner in May,
just three months before being terminated.

Stackla is asking a federal judge to issue a temporary restraining order that would require Facebook to restore Stackla’s accounts. The company is
also seeking a declaratory judgment that it doesn’t violate federal or state anti-hacking laws.

“More than 80 percent of the content sourced for Stackla’s customers comes from
public material on Facebook and Instagram, and without access to those platforms, Stackla’s business will be destroyed,” the company writes in a motion for a restraining order. “As a
result of Defendants’ conduct a majority of Stackla’s 280 major business customers have already raised concerns regarding lack of access and Stackla’s breach of their agreements, and
if Stackla’s access to Defendants’ platforms is not restored, Stackla will be irreparably harmed because its business will be destroyed and it will become insolvent.”

The company says a recent decision involving LinkedIn supports the argument for a
restraining order against Facebook. In that matter, the 9th Circuit Court of Appeals upheld an injunction requiring LinkedIn to allow the company HiQ to access publicly available data about LinkedIn’s
users.



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