Facebook Paying $10 Million To Charity Over Sponsored Stories Lawsuit

Posted Jun 17, 2012

Facebook has agreed to pay $10 million to charity to settle a lawsuit that accused the website of violating the rights of users by using their names, photos, and likenesses to endorse products in the form of “Sponsored Stories.” A sponsored story ad appears on a user’s Facebook page and it usually has a friend’s name, profile picture, and an assertion that shows that the person “likes” the advertiser.

A settlement was reached last month, but it was made public this past weekend. In the lawsuit, Facebook CEO Mark Zuckerberg said that a trusted referral is the “Holy Grail” of advertising.

“California has long recognized a right to protect one’s name and likeness against appropriation by others for their advantage,” stated Judge Lucy Koh.