A federal judge has given final approval to Facebook’s $20 million settlement of a lawsuit over the use of members’ names and pictures without permission for “sponsored stories.”
Facebook charged advertisers nearly $234 million for sponsored stories between January 2011 and August 2012, court filings show.
“Each participating Class Member may be eligible to receive up to $10,” says a statement on the official website for Fraley, et al. vs. Facebook.
A “sponsored story” is an advertisement that appeared on a member’s Facebook page and could consist of a friend’s name, profile picture and an affirmation that the person “likes” the advertiser.
Five Facebook members filed a class action against Facebook in 2011, asserting that the social networking giant shared users’ “likes” of certain advertisers with friends without paying them or allowing them to opt out.
Under the terms of the settlement, Facebook will pay $20 million to compensate class members, and promised to give users more control over how their content is shared – changes which plaintiff lawyers estimate to have a value of up to $145 million.