What happened
In June 2022 Meta settled a suit in which the U.S. Department of Justice alleged that its housing ads violated the Fair Housing Act. Meta denied liability. Under the settlement, Meta built the Variance Reduction System to bring each housing ad's audience closer to the eligible audience in sex and estimated race or ethnicity. Guidehouse, which Meta proposed as reviewer with the department's consent, checked Meta's compliance report for 1 January to 30 April 2024. In its report of 28 June 2024, Guidehouse states that it recomputed coverage from aggregated data that Meta supplied. Its figures differed from Meta's by 0.0%. Among ads with at least 300 impressions, 94.2% had a sex variance of 10% or less, against a required 90.2%. For estimated race or ethnicity the share was 81.4%, against 80.1%. Guidehouse found that Meta met every agreed metric. It tested Meta's sampling and race estimation on synthetic data, since disaggregated data were not available. It gives no figures for delivery without the system. On 30 October 2024 it verified compliance again for May to August 2024.
Sources
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Evaluation report, by an evaluator that the makers or users commissioned.
Guidehouse Inc., independent third-party reviewer under the Settlement Agreement in United States v. Meta Platforms, Inc., No. 22-Civ-5187 (S.D.N.Y.). Meta VRS Compliance Metrics Verification, 28 June 2024. I. Executive Summary, p. 1, with Tables 1 and 2, p. 3. Meta proposed Guidehouse as reviewer with the consent of the Department of Justice. Published by the U.S. Department of Justice, Civil Rights Division.
Guidehouse reviewed the Meta Compliance Report dated May 30, 2024 for the reporting period from January 1, 2024 to April 30, 2024 (Reporting Period) and verified that Meta complied with the relevant VRS Compliance Metrics for both sex and estimated race / ethnicity
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Evaluation report, by an evaluator that the makers or users commissioned.
Guidehouse Inc. Meta VRS Compliance Metrics Verification, 30 October 2024, for the reporting period of 1 May to 31 August 2024. I. Executive Summary, p. 1. Published by the U.S. Department of Justice, Civil Rights Division.
Guidehouse reviewed the Meta Compliance Report dated September 30, 2024 for the reporting period from May 1, 2024 to August 31, 2024 (Reporting Period) and verified that Meta complied with the relevant VRS Compliance Metrics for both sex and estimated race / ethnicity
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Report, by the makers. Context or contrary evidence.
Meta. Toward fairness in personalized ads. White paper by Miranda Bogen and eight co-authors, January 2023. Section on ad delivery outcomes, How it works, p. 14.
we formulate the Variance Reduction System as an offline reinforcement learning framework with the explicit goal of minimizing an ad's impression variance across the demographic subgroups
Details
AI system
- Workflow
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Meta ran housing ads through the VRS, which aims to reduce the variance between the eligible and actual audiences for sex and estimated race or ethnicity. Meta estimated race or ethnicity with privacy-enhanced Bayesian Improved Surname Geocoding and measured variance with Earth Mover's Distance. Meta measured each eligible audience from a sample of users, with a target of 6,000 and an expected minimum of 4,500.
Follow-up
- Conditions for replication
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The sampling process must return large enough samples. An API issue left some samples too small from 1 to 15 January 2024. Users' sex and ZIP codes must be known for their impressions to count in the calculation. Housing ads tagged with other special ad categories must be counted, since Meta's calculation left some out.
Entry details
- Sector
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Housing advertising.
- Purpose
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Meta built the Variance Reduction System to reduce the gap between the sex and estimated race or ethnicity mix of the people eligible to see a housing ad and of the people who see it.
31 more questions not yet checked
model, release, provider, role, configuration, inputs and outputs, autonomy, human oversight, AI contribution, beneficiaries, reach, distribution and access, duration, every measurement question, every money question, ownership and control, dependencies, cross-border connections, geopolitical implications, replication attempts, availability, institutional decision, grounds, action and result, success criterion, every evidence question, observed or intended, alternative assessments, related entries, other identifiers, category mappings.
Cite this record
Peter H. Vartanian. (2026). Variance Reduction System keeps Meta housing ads within agreed limits (AIBD-0925). Artificial Intelligence Benefits Database, edition of 1 November 2026. https://petervartanian.xyz/aibd/records/AIBD-0925.html (archived at https://doi.org/10.7910/DVN/AADSII, version 7.0)