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: Amazon loss widens despite climbing sales

add to favorites email to friend print save as pdf

Related Stories

Facebook sued for children 'liking' products

May 05, 2011

A father is suing Facebook for not getting permission from parents or guardians before letting members of the online social network know when children "Like" brands.

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.

Court: Harvard twins stuck with Facebook agreement

Apr 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.

Recommended for you

Nokia profits rise after sale of handset division

15 hours ago

(AP)—Telecommunications and wireless equipment maker Nokia Corp. saw its shares surge on Thursday after it reported higher profits and an improved earnings outlook in the wake of its sale to Microsoft of its troubled handset ...

Swiss drug maker Roche posts 7 percent profit drop

18 hours ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

Jul 23, 2014

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

User comments : 0