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Facebook Sponsored Stories Settlement

January 5, 2013

By Gilbert Falso :: 11:58 AM

Sponsored Stories LawsuitFacebook has begun sending out legal notices to users about the settlement for its Sponsored Stories class-action lawsuit.

Messages from Facebook with the subject line “LEGAL NOTICE OF SETTLEMENT OF CLASS ACTION” started showing up in users email accounts last week. The message detailed the reason behind the lawsuit and the terms of the settlement. It was sent to all Facebook members who were believed to be in the settlement class for the lawsuit.

The suit was filed on behalf of Facebook users who objected to the use of their names and pictures in Facebook’s Sponsored Stories promotions. These promotions were ads that turned a user’s Likes into advertisements in the news feeds of their friends. The lawsuit claims that the ads were a violation of privacy, as it made users into shills and advertisers for other companies without their direct approval.

The terms of the settlement show that users who filed a claim will receive up to $10 from Facebook. Class members have until May 2, 2013, to submit their claim, or exclude themselves from the settlement. A Fairness hearing is scheduled for June 28, 2013.