The New York Times reported that some 150 companies - including powerful partners like Amazon, Microsoft, Netflix and Spotify - could access detailed information about Facebook users, including data about their friends.
Facebook is being sued by the DC attorney general over allegations it failed to safeguard the personal data of its users.
The social media giant is now facing a lawsuit filed by Washington DC Attorney General, Karl Racine.
The lawsuit alleges that Facebook misled users about the security of their data and failed to properly monitor third-party apps.
Facebook said in a statement Wednesday that it's reviewing the lawsuit.
The social network said it strengthened efforts against voter suppression, brought in voting experts to inform its policies, added ways for users to report incorrect voting information and created channels for state election authorities to report potential voter suppression content. Facebook also highlighted its "war room" efforts to combat fake election news leading up to the midterms.More news: Australia battle in Perth to build lead of 175 over India
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For years, it appears Facebook gave some of the world's largest technology companies more intrusive access to users' personal data than it has disclosed. "We stand by our letter demanding serious changes to Facebook's board".
The Canadian bank RBC, also cited in The New York Times, said the deal with Facebook "was limited to the development of a service that enabled clients to facilitate payment transactions to their Facebook friends", and that it was discontinued in 2015.
At least six U.S. states have ongoing investigations into Facebook's privacy practices, according to state officials.
In an interview, Steve Satterfield, Facebook's director of privacy and public policy, said none of the partnerships violated users' privacy or the F.T.C. agreement. The organization criticized Facebook for not doing enough to protect the data of its African-American users.
The court could award unspecified damages and impose a civil penalty of up to $5,000 per violation of the District's consumer protection law, or potentially close to $1.7 billion if penalised for each consumer affected.
Revelations about Facebook's response to manipulation of the social network before and after the 2016 US presidential election, and shifting accounts about breaches of users' privacy, have battered the company's reputation and fueled frustration on Capitol Hill.