(Reuters) - Facebook Inc is at risk of losing a key seal of approval that gives companies confidence they are getting what they pay for when it comes to advertising with the social-media giant, the Wall Street Journal reported on Friday.
Facebook’s shares were down 1.3% at $202.00 in afternoon trading.
The media industry's measurement watchdog has warned Facebook it could be denied accreditation due to deficiencies in how it reports on the effectiveness of advertising on its products, according to the report. (on.wsj.com/3d5x8jL)
The company failed to address advertiser concerns arising from a 2019 audit, concerning how Facebook measures and reports data about video advertisements, the Journal reported, citing a notice from the Media Rating Council (MRC).
“These exchanges are part of the audit process. We will continue working with MRC on accreditation, as we have since 2016,” a Facebook spokesperson said.
The MRC confirmed that the audit of Facebook is in process but did not provide details, citing its policy.
Reporting by Akanksha Rana in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel