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Facebook offers sponsored stories settlement

Will let users apply for a cash payment of up to $10
Tue Oct 09 2012, 10:31
A Facebook logo

SOCIAL NETWORK Facebook has proposed settlement payments in the privacy case involving its Sponsored Stories feature.

A settlement was sort of reached in May, but the terms were not revealed at the time. In August terms were announced and saw the firm suggest that it pay $10m to a charity.

This offer was declined by a judge because it offered no respite, read cash, for Facebook users.

Facebook is looking to remedy this with an offer that will allow users to apply for a $10 payment.

"We believe the revised settlement is fair, reasonable, and adequate and responds to the issues raised previously by the court," said a Facebook spokesman.

The lawsuit began in 2011 when five users complained that their images had been used in Facebook's "sponsored stories" without their permission. .

US District Court Judge Lucy Koh agreed with their complaint, saying that sort of thing does not fly under California privacy rules.

"California has long recognised a right to protect one's name and likeness against appropriation by others for their advantage," she wrote. µ


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