Update, May 1, 5:04pm:
Reps from Facebook reached out to PAPER to comment on this story, denying that the information they collected was used to create targeted advertisements. Their statement is copied in full below:
"On May 1, 2017, The Australian posted a story regarding research done by Facebook and subsequently shared with an advertiser. The premise of the article is misleading. Facebook does not offer tools to target people based on their emotional state.
The analysis done by an Australian researcher was intended to help marketers understand how people express themselves on Facebook. It was never used to target ads and was based on data that was anonymous and aggregated.
Facebook has an established process to review the research we perform. This research did not follow that process, and we are reviewing the details to correct the oversight."