Facebook pays $10 million to settle ad suit

June 18, 2012
A May 2012 photo shows a smartphone displaying Facebook's screen. Facebook will pay $10 million to settle a lawsuit from users who claimed their names, images and other information were improperly used in advertising described as "sponsored stories," court documents showed.

Facebook will pay $10 million to settle a lawsuit from users who claimed their names, images and other information were improperly used in advertising described as "sponsored stories," court documents showed.

According to documents dated earlier this month and available online, Facebook and a series of plaintiffs submitted an agreement to a in San Jose, California.

The lawsuit was filed in 2011 by a group led by a Washington state named Angel Fraley. The suit alleged that Facebook users, including minors, had their names and likenesses used in ads without their permission.

The suit contended 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 the "sponsored stories" that the suit said was a form of advertising.

A assigned to the case said the agreement included the "substantial sum" of $10 million "to be distributed to groups whose charters set out actions and programs relevant to advocacy related to the purposes for which the case was brought."

A settlement in the case was unveiled earlier this month but terms were not disclosed.

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

Explore further: Facebook sued for children 'liking' products

Related Stories

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.

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.

Recommended for you

Inferring urban travel patterns from cellphone data

August 29, 2016

In making decisions about infrastructure development and resource allocation, city planners rely on models of how people move through their cities, on foot, in cars, and on public transportation. Those models are largely ...

How machine learning can help with voice disorders

August 29, 2016

There's no human instinct more basic than speech, and yet, for many people, talking can be taxing. 1 in 14 working-age Americans suffer from voice disorders that are often associated with abnormal vocal behaviors - some of ...

Apple issues update after cyber weapon captured

August 26, 2016

Apple iPhone owners on Friday were urged to install a quickly released security update after a sophisticated attack on an Emirati dissident exposed vulnerabilities targeted by cyber arms dealers.

2 comments

Adjust slider to filter visible comments by rank

Display comments: newest first

Husky
1 / 5 (1) Jun 18, 2012
Husky Likes This !
verkle
Jun 18, 2012
This comment has been removed by a moderator.

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.