That seems absolutely insane! If this is (or was) actually happening, I’m surprised we haven’t heard more about this. As bad as your example is, I can easily think of way more damaging scenarios.
That's a common justification for access, but it is no assurance to how they will actually use the data they gain access to. Knowing how critical profiling is to the IG/FB business model, I bet it snatches a lot of data to exploit later.