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Geofenced ads are not the same as targeted ads.
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Okay what if I am in Florida and Facebook sees that all of my posts are in Spanish, should it not be allowed to target me with Spanish speaking ads?
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Correct. The proposal is to not be able to use your posts to determine which ads to show. But showing you ads in Spanish because you’re in southern Florida or Puerto Rico would be acceptable.
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Such a law will probably allow targeting based on the browser's language (browsers already send a "Accept-Language" field, doxing you with every single http request), or whatever language you have configured a website/app interface to be shown in.

But not guess a language based on the content of posts.

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But I don’t speak Spanish and I’m in Florida…
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