Facebook to compensate users for sharing details on ads By Joe Miller BBC News


Approximately 614,000 Facebook
users whose personal details
appeared in ads on the site
without their permission will each
receive a $15 (£9.65) payout.
The names and pictures of an
estimated 150 million Facebook
members were used in Sponsored
Stories, but only those who
responded to an email from the site
earlier this year will be
Privacy organisations will also
receive some of the $20m (£12.9m)
Facebook has not responded to the
BBC’s request for comment.
The payout was approved by a US
court on Monday following a class
action filed against Facebook in
2011 by five of its users.
The group said their details had
been used to promote products and
services through the site’s
Sponsored Stories programme,
without paying them or giving them
the choice to opt-out.
A Sponsored Story is a tailored
advertisement that appears on
members’ Facebook pages,
highlighting products a user’s
friends have endorsed or “liked” on
the site.
No ‘meaningful’ harm
US District Judge Richard Seeborg
acknowledged that the $15
payments were relatively small, but
said it had not been established
that Facebook had “undisputedly
violated the law”.
He added that the claimants could
not prove they were “harmed in any
meaningful way”.
The court estimated that Facebook
had made about $73m (£47m) in
profit from the Sponsored Stories
featuring details of the 150 million
The settlement also requires
Facebook to make changes to its
“Statement of Rights” and to give
users more information and control
over how their details are used in
the future.
This move was estimated by the
plaintiff’s lawyers to cost Facebook
$145m in advertising revenue.
Approximately 7,000 Facebook users
opted out of the settlement
altogether, allowing them to bring
their own legal action against the
social network.

posted by janjaweed!


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