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Judge rejects Facebook's proposed Sponsored Stories settlement

Due to concerns such as not offering any money to the plaintiffs
Mon Aug 20 2012, 12:11
Judge's gavel

A US DISTRICT JUDGE has rejected Facebook's proposed settlement offer in the class action lawsuit complaining that the social network allegedly violated members' rights through its "sponsored stories" advertising feature.

Judge Richard Seeborg rejected the social networking company's offer due to several concerns, such as that the agreement pays 10m to chairty but does not offer any money to the plaintiffs.

According to Reuters, Seeborg said the company and plaintiffs' attorneys could modify their agreement to address his concerns.

"We continue to believe the settlement is fair, reasonable, and adequate," a Facebook spokesman told The INQUIRER. "We appreciate the court's guidance and look forward to addressing the questions raised in the order."

The plaintiffs' attorneys could not be reached for comment.

Facebook previously said it would pay $10m to charity to settle the lawsuit after using members' faces in sponsored ads on the website without permission. This, however, needed to be approved by the judge, who it now seems isn't having any of it.

The lawsuit, which began last year after five aggrieved users complained that their mugs were being used in Facebook's "sponsored stories", was settled in May but made public in June.

The five Facebook users filed their lawsuit in December 2011 in federal court in San Jose, California, claiming that the unauthorised use of their photos violated California's privacy law.

They were particularly annoyed that Facebook had made their "likes" known to others without allowing them to opt out or paying them. µ

 

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