Facebook Must Pay $10M for "Sponsored Stories" Lawsuit Settlement
June 18, 2012 11:40 AM
comment(s) - last by
The suit was actually settled last month, but wasn't made public until now
Facebook landed itself in yet
another privacy lawsuit
over the use of "Sponsored Stories," and will now have to pay $10 million to settle it.
Facebook's Sponsored Stories are advertisements that contain a friend's name, profile picture and text indicating that that particular friend "likes" the product, service, or person being advertised. These ads act as a recommendation from that friend, but there's one problem -- that Facebook friend knows nothing about it, and they're not being compensated for acting as a referral. They also can't opt out.
Five Facebook members sued the social network for these Sponsored Stories, saying that this practice violates California law. The lawsuit was filed in federal court in San Jose, California.
was actually settled
last month, but wasn't made public until now. According to the lawsuit, this could have included one of every three Americans, meaning Facebook could have been in some serious hot water and paid billions if word got out.
U.S. District Judge Lucy Koh found that Facebook's Sponsored Stories could cause "economic injury" by using friends' names, likenesses and pictures. She ordered a cy-pres settlement, meaning Facebook's $10 million would be sent to charity.
According to Facebook, Sponsored Story advertisements are up to three times more valuable than a regular Facebook ad.
It looks like Facebook is dropping lots of dough lately, with the
expansion of its headquarters
in Menlo Park, California from 2,200 employees to 6,600, a recent $1 billion
, a possible
for $1 billion, and an expected
by next year.
This article is over a month old, voting and posting comments is disabled
6/18/2012 1:23:12 PM
Company is making millions off the sale of people's personal information. Could potentially make billions, if people are actually stupid enough to let that happen. But since annoying orage videos get like 500 billion views, I have confidence that people really ARE stupid enough to let that happen.
“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs
Facebook Gets Permission to Expand Headquarters in Menlo Park
May 30, 2012, 3:33 PM
Report: Facebook May Purchase Opera for $1 Billion, Improve Mobile Experience
May 29, 2012, 10:07 AM
Report: Facebook to Launch Phone "By Next Year", Eyes HTC Purchase
May 28, 2012, 12:00 PM
FTC Launches Probe Into Facebook's $1 Billion Instagram Acquisition
May 11, 2012, 10:37 AM
Facebook, FTC Settle Privacy Case
November 30, 2011, 9:46 AM
Edward Snowden Presents Tech to Stop Government Spying
July 21, 2014, 12:00 PM
Verizon FiOS Network Upgrade Brings Symmetrical Upload/Download Speeds
July 21, 2014, 8:33 AM
Amazon Launches First Fire Phone TV Spot, Spends 30 Seconds Promoting Prime
July 18, 2014, 11:17 AM
Samsung Continues to Pick on Apple's iPad in Two New Commercials
July 13, 2014, 5:35 PM
Despite Legal Threats Google Begins Posting Warnings of ISP Throttling
July 7, 2014, 5:52 PM
Russia Introduces Bill to Keep Citizens' Data Within the Country
July 3, 2014, 2:34 PM
Most Popular Articles
Quick Note: Nokia Devices Now Receiving Windows Phone 8.1 Update
July 15, 2014, 10:42 AM
Microsoft Kills Entertainment Unit, May Shelve Flagship Lumia "McLaren"
July 18, 2014, 7:40 PM
Boeing 777 Malaysian Airlines Flight 17 Crashes in Ukraine
July 17, 2014, 1:00 PM
Tesla Confirms “Model III” EV with 200+ Mile Range, Blames Ford for Missed "SEX"
July 15, 2014, 9:12 PM
FBI Report Suggests That Self-Driving Cars Could Be Used as Rolling Bombs
July 16, 2014, 11:02 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information