The Privacy Commissioner has found Facebook in breach of the New Zealand Privacy Act.

The finding comes after Facebook refused a complainant access to personal information held on the accounts of several other Facebook users.

While such investigations are almost always confidential, the Privacy Commissioner found it necessary to identify Facebook to reveal the "demonstrated unwillingness" of the social media company to comply with the law.

Facebook argued that Privacy Act did not apply to it and it did not have to
comply with the Commissioner's request to review the information requested by the
complainant.

The Commissioner found Facebook was subject to the Privacy Act and had fundamentally
failed to engage with the Act.

"The Commissioner's view is that Facebook is subject to the Privacy Act because it operates in New Zealand and provides services to New Zealanders."

The Commissioner found that Facebook had not complied with the Act for failing to properly respond to the complainant's request for information, acknowledge it was subject to the Privacy Act, and cooperate with the Commissioner's investigation and statutory demand for information.

Due to Facebook's refusal to cooperate, the Commissioner was unable to review the material requested by the complainant and unable to arrive at a view that Facebook was
justified in properly withholding information from the complainant.

This prevented the Commissioner from being able to address the complaint under the statutory process.

This announcement follows an international scandal, involving data firm Cambridge Analytica's misuse of customer data.

An estimated $90 billion has been wiped off Facebook's stock value since the start of the scandal.

Yesterday, it was also reported that Facebook stock has become so toxic that some investment funds now are lumping in the social network with big polluters and other corporations they consider ethically challenged.

Facebook is yet to respond to a request for comment in regard to the local breach of the Privacy Act.