Federal Judge Approves Facebook’s Settlement For Sponsored Stories

Posted Aug 27, 2013

A federal judge has approved of Facebook’s class-action settlement.  Facebook is going to pay $20 million for putting users in their “Sponsored Stories” advertising program without their permission.

U.S. District Judge Richard Seeborg approved this deal months after having concerns because Facebook originally provide a $10 million payout to attorneys suing Facebook and $10 million to activist and research groups.  The new plan involves the $20 million payout being shared by charities, the class-action attorneys, and the 125 million Facebook users that appeared in Sponsored Stories without consent.

Facebook said that adult users now have the right to control, but not eliminate how they use faces in ads under the Sponsored Stories.  Minors can completely opt out, but the privacy groups are saying that they should be automatically opted out.

This lawsuit was filed in April 2011.  The plaintiffs claim that Facebook did not adequately inform people on the Sponsored Stories feature or give them a way to opt out.  Facebook did not admit to committing any wrongdoing.

[Source: Wired]