Facebook settles US suit on 'sponsored stories'

May 22, 2012

Facebook has settled a lawsuit alleging the social network improperly used members for advertising purposes without their consent in so-called "sponsored stories," court documents showed Tuesday.

The terms of the settlement were not disclosed. But the parties said in a statement filed in California federal court that they had agreed to end the case.

The suit, which sought class-action status and could have applied to millions of members, alleged that Facebook improperly used advertising when a member indicated he or she "liked" a particular company.

The "like" was passed on to the friends of those members as an implied endorsement of a company or product. In some cases, the profile or picture was used in thee "sponsored stories" that the suit said was a form of advertising.

was also said to have misled members into believing they could limit the use of their pictures or images in such endorsements.

The company, which launched a massive public offering last week, is under growing scrutiny for its . It is also under pressure from to find ways to monetize its social network with more than 900 million members.

Explore further: Five users sue Facebook for being too social a network

Related Stories

Court: Harvard twins stuck with Facebook agreement

April 11, 2011

A federal appeals court ruled Monday that former Harvard University schoolmates of Facebook founder Mark Zuckerberg can't undo their settlement over creation of the social networking site.

New lawsuit takes aim at Facebook privacy

May 19, 2012

A new lawsuit consolidating several complaints about Facebook's privacy policies was filed Friday in California, seeking damages for US users of the social network for improper tracking.

Recommended for you

Glider pilots aim for the stratosphere

November 20, 2015

Talk about serendipity. Einar Enevoldson was strolling past a scientist's office in 1991 when he noticed a freshly printed image tacked to the wall. He was thunderstruck; it showed faint particles in the sky that proved something ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.