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
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Most Popular Articles
Say Goodbye to Data Plans - Sprint and T-Mobile offer Unlimited Data
August 22, 2016, 6:12 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Uber - Everyone's Autonomous Car Driver?
August 20, 2016, 6:01 AM
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
Lenovo vs. Asus vs. HP - Best Laptop Under $500.00
August 19, 2016, 4:00 AM
Latest Blog Posts
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information