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
RE: The amazing and disturbing thing about Facebook
6/22/2012 8:40:16 PM
Thank you for taking up this issue. I could not agree more. These companies have become faceless, soulless entities that are virtually impossible to contact let alone get any feedback from. I have used Google for years and have many issues that have never been addressed and would improve my experience with their service but have never been able to find a way to contact them directly and have never received a single reply from any of their forums from Google itself. FB is not a company I will have any truck with at all. They can track me as much as they like. I cannot stop them doing what they do but I can refuse to be a member of their fraternity and participate in the silliness that is social networking. Social networking seems like a good idea but has become more like public masturbation and now only serves big companies to market products. More advertising, something the world needs desperately.
Having a clear and easy to use link on Google's homepage would be a great idea. Actually replying to feedback would show Google does listen and care about the service they provide as opposed to just selling the data they collect to marketers. And make no mistake Google, if you are monitoring this website, your service is far from ideal. Listening to your customers is the best way to improve your service. But you appear to be completely ambivalent to the point of condescension. Sooner or later that is going to come back to bite you. Like all arrogant companies your hubris will be your undoing.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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
Russian Hackers Compile List of 10+ Million Stolen Gmail, Yandex, Mailru
September 11, 2014, 11:41 AM
House Minority Leader Pelosi Criticizes FCC's "Fast-Lane" Net Neutrality Plan
September 9, 2014, 4:15 PM
Smarter Than Siri? Cortana Adds Game NFL Game Winner Prediction
September 3, 2014, 4:12 PM
Apple Says Nude Celebrity Photo Dump Wasn’t Result of iCloud, Find My iPhone Breach
September 2, 2014, 3:26 PM
FCC Orders Advertisers to Cut Out That Racket, Turn Down Commercials
August 29, 2014, 12:49 PM
Dropbox Bows to Competitive Pressure, Provides 1TB of Storage for $10/Month
August 27, 2014, 11:17 AM
Most Popular Articles
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
Quick Note: Buy an Xbox One Sept 7-13, Get a Free Game
September 4, 2014, 10:42 AM
Quick Note: Microsoft to Ditch Windows Phone, Nokia Branding
September 10, 2014, 2:14 PM
Apple Announces 4.7" iPhone 6, 5.5" iPhone 6 Plus
September 9, 2014, 1:45 PM
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