Facebook Inc (FB): Brazilian school files lawsuit over Sponsored Stories

Posted Mar 22, 2014

Facebook Inc (NASDAQ:FB) is being sued over Sponsored Stories, which is service that used personal information from users in advertisements. Sponsored Stories no longer exists today. But the The Brazilian Institute of Computer Law (IBDI) is suing Facebook for $33 million. The IBDI alleges that Facebook violated user privacy.

“Using the name and image of Facebook users for business purposes without any compensation to them or share in profits from the sale of advertising represents unfair business practice and misleading customer service,” said IBDI attorney Sérgio Palomares in an interview with ZDNet.

In a separate lawsuit, Facebook paid $10 million to users after a class-action lawsuit in the U.S. over the legality of invasive advertisements in 2012.