Facebook Suspends Data Firm CubeYou amid Privacy Scandal

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Facebook Inc. (NASDAQ: FB) suspended data firm CubeYou amid its privacy scandal. The firm was collecting information about users through quizzes, CNBC reported. CubeYou marks another firm Facebook has suspended for violation of its terms of service.

CubeYou misleadingly labeled its quizzes “for non-profit academic research,” then shared the information with marketers, which is very similar to how Cambridge Analytica received information.Cambridge received information of users through a same quiz-like survey, which was labeled as a psychological research application.

Facebook suspended CubeYou after CNBC contacted the company with allegations.

Facebook’s move to suspended data analytic firms comes after its massive privacy scandal which exposed nearly 87 million users. The social media giant has already suspended Cambridge Analytica and Acxiom Corporation (NASDAQ: ACXM).

CubeYou has been hit with an allegation that the firm sold collected data from researchers who worked with the Psychometric Lab at Cambridge University. CubeYou’s CEO denies all allegations.

“These are serious claims and we have suspended Cubeyou from Facebook while we investigate them,” said Ime Archibong, Facebook vice president of product partnerships, in an emailed statement. “If they refuse or fail our audit, their apps will be banned from Facebook.”

“Our apps apps and activity on Facebook have been subject to regular audits and reviews with the company,” Cubeyou said in a statement Monday. “All our Facebook apps have always complied with Facebook’s data policy and rules. We stand ready to answer any questions Facebook has as they review this matter.”

Facebook Chief Executive Officer Mark Zuckerberg is expected to testify before Congress this week to answer questions regarding the company’s privacy. Facebook has already lost almost $100 billion in market value.

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