Meta’s platforms—including Facebook, Instagram, Messenger, and Meta Business Suite—rank among the most invasive apps in terms of data privacy. A recent study analyzing privacy policies across 5,000+ apps found that Meta collects an alarming 32 types of user data, including highly sensitive information that is often linked to individual users. Surprisingly, TikTok, often criticized for data collection, ranked 76th out of over 5,000 apps rated for invasiveness, while Instagram and Facebook tied for first place as “most invasive” and Meta Business Suite and Messenger tied for third place.

Even as Meta claims to enhance transparency and user control, its privacy policies remain vague, failing to fully disclose:

• The exact nature and granularity of data collected

• How it integrates cross-platform tracking

• Its retention and data deletion policies

• The criteria used by AI algorithms to create targeted ads

Meta's lack of transparency exposes shareholders to regulatory fines, lawsuits, and reputational damage, making greater disclosure critical to mitigating financial risks. This is why Tulipshare has submitted a shareholder proposal which calls on Tulipshare’s shareholder proposal calls on Meta’s Board of Directors to publish a comprehensive, publicly accessible report detailing:

• A Breakdown of Data Collection & Retention: What specific user data Meta collects—including device information, geolocation, biometric data, offline activity, and personal identifiers—and how long this data is stored.

• Stronger User Consent Mechanisms: How Meta obtains explicit, informed consent from users before collecting and processing their data, and what options users have to manage or withdraw their consent.

• Advertising & Targeting Practices: The data sources and AI models used to create targeted advertisements, as well as how Meta ensures compliance with privacy regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

• Impact Assessments & Audits on User Privacy: An evaluation of how Meta’s ad-targeting system affects user privacy and whether its algorithms prioritize profit over ethical data use.

So, why should Meta's investors care about these issues?

Meta has a history of costly privacy violations, with recent fines and settlements totaling billions:

• €1.2 billion fine for illegally transferring EU user data in violation of GDPR

  
  

• $31.85 million settlement over the Cambridge Analytica scandal, after Meta failed to disclose that third parties accessed the data of 30 million users
  
  

• Meta investors have sued the company for misleading SEC filings about privacy risks, alleging that executives treated data breaches as "hypothetical" even when they were already occurring
  
  

If Meta fails to align with stricter privacy regulations, the company faces further fines, shareholder lawsuits, and regulatory scrutiny. Additionally, Meta’s privacy scandals have significantly damaged user trust—resulting in declining engagement, particularly among younger demographics. Considering consumers are increasingly expecting greater control over their data, failure to be transparent could lead to user attrition, lower engagement, and reduced advertising revenue. Meta also risks losing market share by lagging behind its competitors that have taken steps to limit tracking and improve privacy protections.