$20M Preliminary Settlement Approved in Facebook Sponsored Stories Class Action Lawsuit

San Francisco, CA: Preliminary approval of a $20 million consumer fraud class action lawsuit pending against Facebook. The settlement, granted by a federal judge, seeks to resolve allegations that Facebook used its 'users' names, photos and identities to advertise products on the social network, without those 'users' permission.

The lawsuit, entitled Angel Fraley, et al. v. Facebook, Inc., Case No. 11-cv-1726, alleges the advertising program violated users' right to privacy by publicizing their "likes"without asking for permission or offering compensation.

Facebook has agreed to pay $20 million to settle the class action lawsuit, which will be split amongst charities, attorneys and the 125 million US Facebook users who appeared in Sponsored Stories without their consent. If approved, class members may be eligible to receive up to $10 each.

As part of the settlement, Facebook has also agreed that users will be allowed to exclude themselves from the advertising program.

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Published on Dec-4-12