Controversy continues to swirl around how
the consulting firm Cambridge Analytica obtained personal data from over
50 million Facebook users without their knowledge and used it to target
ads to individuals in an effort to help Donald Trump be elected
president in 2016.
But a more serious case of apparent misconduct involves Facebook data
going to a different presidential campaign – this time in 2012. In this
case, which is getting far less attention, Facebook reportedly
voluntarily provided data on millions of its users to the re-election
campaign of President Obama.
If true, such action by Facebook may constitute a major violation of
federal campaign finance law as an illegal corporate campaign
contribution. The matter should be investigated by the Federal Election
Commission – an agency I am quite familiar with, because I served as one
of its commissioners from 2006 to 2007. The commission enforces campaign
finance laws for congressional and presidential elections.
A federal law bans corporations from making “direct or indirect”
contributions to federal candidates. That ban extends beyond cash
contributions to “any services, or anything of value.” In other words,
corporations cannot provide federal candidates with free services of any
kind. Under the Federal Election Commission’s regulations, “anything of
value” includes any “in-kind contribution.”
Whether or not the Obama campaign and Facebook violated this ban is an
open question. It should be investigated by the Federal Election
Commission and potentially the U.S. Department of Justice.
For example, if a corporation decided to offer a presidential candidate
free office space, that would violate federal law. Corporations can
certainly offer their services, including office space, to federal
campaigns. But the campaigns are required to pay the fair market value
for such services or rental properties.
According to Carol Davidsen, the former media director for Obama for
America, Facebook gave the 2012 Obama campaign direct access to the
personal data of Facebook users in violation of its internal rules,
making a special exception for the campaign. The Daily Mail, a British
newspaper, reported that Davidsen said on Twitter March 18 that Facebook
employees came to the campaign office and “were very candid that they
allowed us to do things they wouldn’t have allowed someone else to do
because they were on our side.”
The type of data that the Obama campaign was mining from Facebook is a
more sophisticated version of the type of data that has long been
provided by professional direct mail marketers – something pioneered by
Richard Viguerie. Viguerie, for example, has detailed personal data on
“12 million conservative donors and activists” to whom his company sends
letters and emails on behalf of his clients. He provides information to
campaigns looking for votes and money, and to nonprofit and advocacy
organizations raising funds.
Political campaigns must pay for these services. Under a Federal
Election Commission regulation, giving a mailing list or something
similar to a campaign is considered an “in-kind contribution.”
So if Facebook gave the Obama campaign free access to this type of data
when it normally does not do so for other entities – or usually charges
for such access – then Facebook would appear to have violated the
federal ban on in-kind contributions by a corporation. And the Obama
campaign may have violated the law by accepting such a corporate
contribution.
What about the story currently in the news about Cambridge Analytica
using Facebook data for the Trump campaign? The important legal
distinction may be in the way the data were obtained. Fox News reported
that the Trump campaign hired Cambridge Analytica to do political
research on voters and reportedly to “help the campaign target specific
voters with ads and stories.”
The real controversy now involving the Trump campaign deals with exactly
how Cambridge Analytica obtained the data it used for the campaign. A
CNBC report says that Cambridge Analytica bought the data from Aleksandr
Kogan and his company, Global Science Research, which obtained the data
through an app and a psychological test taken by Facebook users.
The amounts paid by the Trump campaign to Cambridge Analytica for its
services – and the use of the Facebook data – are listed in its spending
reports filed with the Federal Election Commission. This proves that the
Trump campaign paid for services in the same way that campaigns
routinely hire and pay direct mail marketers. So the Trump campaign did
not get an illegal corporate contribution from Cambridge Analytica or
Facebook when it received free access to very valuable data.
Whether or not Global Science Research and Cambridge Analytica violated
any Facebook rules regarding this data is not the responsibility of the
Trump campaign. From the standpoint of federal campaign finance law, the
Trump campaign met its obligation to pay for and report this spending
and did not violate the ban on corporate contributions.
However, whether or not the Obama campaign and Facebook violated this
ban is an open question. It should be investigated by the Federal
Election Commission and potentially the U.S. Department of Justice. The
commission handles most routine violations of the law, which are civil
matters. The Justice Department is responsible for investigating knowing
and intentional violations of the law, which are criminal matters.
Although the statute of limitations may have already run out on this
conduct by the Obama campaign, one thing seems certain: Carol Davidsen’s
admissions should provide a sufficient basis for opening a federal
investigation of what may have been a serious violation of the law by
the Obama campaign.
Hans A. von Spakovsky is a Senior Legal Fellow at The Heritage
Foundation. He is the coauthor of “Who’s Counting? How Fraudsters and
Bureaucrats Put Your Vote at Risk” and “Obama’s Enforcer: Eric Holder’s
Justice Department.” |
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