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On July 26, 2023, Australia’s Federal Court ordered two Meta-owned companies to pay a total of A$20 million—about US$13.5 million at the time—for Onavo Protect promotions the court declared were liable to mislead consumers. The case concerned privacy-focused marketing that did not adequately disclose that activity data collected through the free VPN could be used for Meta’s commercial purposes. Facebook Israel Ltd and Onavo Inc each had to pay A$10 million; Meta Platforms Inc did not pay this penalty.
What Onavo Protect promised
Onavo Protect was a free mobile app marketed as a VPN and, for some users, a data-management service. Its app-store promotions described it as a way to protect personal information and keep users’ data safe. The ACCC cited claims including “Use a free, fast and secure VPN to protect personal information” and “Helps Keep You and Your Data Safe.” Earlier promotional material also used the phrase “Keep it secret. Keep it safe… Onavo Protect, from Facebook.”
The issue was the overall impression those claims created for consumers looking for privacy protection—not one slogan considered in isolation. A VPN can protect traffic between a device and the VPN provider, but the provider itself may be able to observe connection or usage information. A VPN therefore shifts trust to its operator; it does not, by itself, establish that the operator collects no data or uses it only to provide the service. The ACCC’s 2020 announcement describes the promotions at issue.
What data was collected and how it was used
The ACCC said Onavo Protect collected detailed information about users’ internet and app activity, including which applications they accessed and how much time they spent using them. According to the regulator, the information was aggregated and anonymised before being shared with Meta for commercial purposes, including market research and identifying potential acquisition targets. The case materials concern activity and usage data; they do not establish that Meta read every message or captured the full content of every communication.
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The ACCC said the app had been installed more than 270,000 times by Australian users. That figure refers to installations, not necessarily unique people or active users. The regulator’s penalty announcement and court filing describe the data practices and the regulator’s account of their commercial use.
What the Federal Court ordered—and who paid
The Federal Court declared that Facebook Israel Ltd and Onavo Inc had engaged in conduct liable to mislead the public by failing to adequately disclose that Onavo Protect data could be used for purposes beyond providing the VPN service, including Meta’s commercial purposes. The companies agreed to the declarations, penalties and costs orders in joint submissions with the ACCC. This was not a fully contested trial in which every allegation was litigated to judgment.
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| Entity | Outcome |
|---|---|
| Facebook Israel Ltd | Ordered to pay A$10 million |
| Onavo Inc | Ordered to pay A$10 million |
| Meta Platforms Inc | The proceeding against the parent company was dismissed after settlement negotiations concerning its role in the conduct |
The official penalty was denominated in Australian dollars: A$20 million in total, or approximately US$13.5 million at the time. The subsidiaries were described by the ACCC as indirect wholly owned subsidiaries of Meta and were responsible for the app’s Apple App Store and Google Play listings. Calling this simply a fine “against Meta” obscures which legal entities were ordered to pay.
The case was brought by the Australian Competition and Consumer Commission under the Australian Consumer Law. Its core issue was misleading or deceptive consumer-facing representations and inadequate disclosure—not a standalone data-breach penalty imposed by a privacy regulator. The ACCC announcement describes the court orders and the dismissal of the case against Meta Platforms Inc.
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When the app was available in Australia
- February 1, 2016: The Australian availability period began.
- December 2016: The service became available for active use in Australia.
- February 2016 to October 2017: The ACCC’s proceedings focused on app-store promotions and representations during this period.
- February 2019: Onavo Protect was no longer available for download in Australia.
- May 2019: The service ceased.
- December 16, 2020: The ACCC instituted Federal Court proceedings.
- July 26, 2023: The court made the declarations and ordered the subsidiaries to pay A$20 million in total.
Onavo Protect is no longer a current VPN option. The dates and service history are set out in the ACCC’s final announcement and its original announcement of proceedings.
What the case means when choosing a VPN
The lesson is not that every free VPN is deceptive, or that encryption failed in this case. It is that technical protection and the provider’s data practices are separate questions. A service may encrypt a connection to its server while still collecting usage or connection information itself. What the provider can see depends on its design, protocols, DNS configuration, operating system and logging practices.
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- Check ownership and funding. Find out who operates the service and how it earns revenue. A free product may be funded through advertising, analytics, data monetisation or other commercial activity; free access alone does not prove wrongdoing.
- Read the privacy policy for specific data categories. Look for rules covering DNS queries, IP addresses, connection timestamps, device identifiers, app usage, bandwidth and diagnostics, as well as retention and sharing.
- Ask what “anonymous” or “aggregated” means. Aggregation may reduce identifiability, but it does not necessarily mean no data about a device or user was collected before aggregation.
- Look for supporting transparency measures. Independent audits, transparency reports, open-source components and clear retention policies can help inform a decision, but none guarantees that a provider cannot collect or disclose data.
- Match the tool to the threat. A VPN does not automatically prevent tracking through logged-in accounts, browser fingerprinting, cookies, malware, phishing or information you submit to websites. It also cannot prevent the VPN operator from collecting data its service can observe.
A paid subscription provides a more visible revenue source, but payment alone is not proof of trustworthy privacy practices. Compare the provider’s actual disclosures and safeguards rather than treating “free,” “paid,” “private” or “secure” as a complete description of how it handles data.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did users receive compensation?
The ACCC’s announcement describes court-ordered penalties, declarations and a contribution to the regulator’s costs; it does not describe an automatic refund or individual compensation program for Onavo Protect users. The A$20 million was ordered paid by the companies, not distributed to app users.
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