Caucasians are a category that can be selected from that list too, right? So, the article lead should be ammended from:

"Facebook’s system allows advertisers to exclude black, Hispanic, and other “ethnic affinities” from seeing ads."

To this:

"Facebook’s system allows advertisers to exclude white, black, Hispanic, and other “ethnic affinities” from seeing ads."

This is a good example of lying by omission. Ethically, there is nothing wrong with this system if the exclusion can be applied equally to any ethnic group.

And besides, we need this for practical reasons: there are special creams for people of certain pigments that won't work for my vanilla face...