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.
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RE: The amazing and disturbing thing about Facebook
6/18/2012 1:28:41 PM
There is nothing of us that isn't tracked yet. I'm pretty sure the entire web is tracking just about everything from everyone, with the exception of some very paranoid people (who where right from the beginning and have no surf history what so ever).
Thing is though at the moment all that data is used for is running it through algorithms which then determine what other data to send back to that IP (such as advertising algorithms etc). No human looks at the data and no system is used to filter out data specifically for human use (just statistical use). With human use i mean determining human behaviour to find out crimes, whatever society might define those as, something that will be detrimental to that human.
It'll be real uncanny when a dictatorship arises with no scrupules about using said data to find out political dissidents. When people start to be dragged out of their homes for something they just clicked on while being drunk last night, today's tracking will seem like the good ol' days.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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