Breaking News

Facebook Agrees to $20 Million Settlement in “Sponsored Story” Case
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Monday, US District Judge Richard Seeborg approved a $20 million settlement by Facebook in the “Sponsored Story” class action.

The issues revolved around Facebook using the names and pictures of about 150 million Facebook members in its Sponsored Story program, without providing the users a choice to opt-out and without paying them.

  
What
Where


A part of the settlement would go to organizations promoting online privacy while the rest would go to members of the class, with a cap of $15 per affected user.

While admitting the $15 payments were quite small, Judge Seeborg said that the plaintiffs had failed to prove that Facebook had “undisputedly violated the law.”

He also added that the claimants did not prove that they were “harmed in any meaningful way.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The case was brought against Facebook in 2011 by five affected members as a class action.

Facebook, according to the estimates of the court, made about $73 million in profit from the Sponsored Stories that used the details of the affected 150 million members.



However, plaintiffs’ lawyers claim that Facebook earned about $145 million in advertising revenue from the program.

However, the best part of the settlement is that it requires Facebook to make significant changes to its “Statement of Rights” and provide users with more detailed information, as also more control, over how their personal details can be used by the social network giant.

However, the Sponsored Story has hardly reached its end, as at least 7,000 Facebook users who had been affected, opted out of the settlement. This leaves them free to bring their own action in the matter.

Not all of the 150 million Facebook members affected by the Sponsored Story program would receive compensation, but only those who had responded to an email from Facebook sent out earlier this year, would be eligible.



 

RELEVANT JOBS

Attorney

USA-ME-Portland

The Bennett Law Firm, a regional law firm with a practice focusing on representing management in lab...

Apply now

Civil Lawyer for NY & NJ - Attorney

USA-NY-New York City

Wanted: In-house attorney must be knowledgable and experienced in elder law, medical malpractice, wr...

Apply now

ADA Compliance Officer

USA-CA-Los Angeles

The Personnel Commission of the Los Angeles Community College District (LACCD) is currently recruiti...

Apply now

Paralegal, Immigration Law (NIV)

USA-CA-Agoura Hills

Immigration Law Paralegal (NIV) (5+ years’ experience) We are looking for dedicated, detai...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Family Law Associate Attorney

USA-TX-Austin

Austin office of our client seeks family law associate attorney with 3+ years of courtroom experienc...

Apply Now

Civil Litigation Associate Attorney

USA-TX-Austin

Austin office of our client seeks associate attorney with 5+ years of civil litigation experience. T...

Apply Now

Family Law Associate Attorney

USA-CO-Greenwood Village

Greenwood Village office of a BCG Attorney Search Top Ranked Law Firm seeks family law associate att...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top