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Companies can have a legitimate concern about a potential employee's social media presence. A civil rights organization, for instance, probably wouldn't want to hire someone that constantly posted racist material on Facebook. But when the social media presence is already hidden from the public, there is no legitimate basis for seeking access into someone's private life, and by extension the private lives of their friends. If you don't get a job offer over refusing their request, I think you should consider yourself fortunate to have avoided working for a company with so little respect for their employees.