Facebook to shell out $10 million for lawsuit settlement
June 18, 2012
Source: MM Network
By: MediaMughals
Facebook Inc will be shelling out US $10 million to charity in order to settle a lawsuit filed against it earlier.
The lawsuit was filed by five Facebook members who had accused the social networking site of violating California law by publicizing users' "likes" of certain advertisers on its "Sponsored Stories" feature without paying them or giving them an option of opting out.
The settlement which was agreed upon last month was made public last weekend.
A "Sponsored Story" is an advertisement that appears on a user's Facebook page. It usually consists of another friend's name, profile picture and a notification that the friend "likes" the advertiser.
U.S. District Judge Lucy Koh said that the plaintiffs had proven that Facebook users could face economic injury via the use of their names, photographs and likenesses.
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