{"id":13370,"date":"2012-06-17T00:06:46","date_gmt":"2012-06-17T00:06:46","guid":{"rendered":""},"modified":"2012-06-17T00:06:46","modified_gmt":"2012-06-17T00:06:46","slug":"Facebook-to-pay-10-million-to-settle-suit","status":"publish","type":"post","link":"https:\/\/asiancemagazine.com\/?p=13370","title":{"rendered":"Facebook to pay $10 million to settle suit"},"content":{"rendered":"

Facebook Inc has agreed to pay $10 million to charity to settle a lawsuit that accused the site of violating users’ rights to control the use of their own names, photographs and likenesses, according to court documents made public over the weekend.<\/strong>
\n
\nThe lawsuit, brought by five Facebook members<\/strong>, alleged the social networking site violated California law by publicizing users’ “likes” of certain advertisers on its “Sponsored Stories” feature without paying them or giving them a way to opt out, the documents said.
\n
\nA “Sponsored Story” is an advertisement that appears on a member’s Facebook page<\/strong> and generally consists of another friend’s name, profile picture and an assertion that the person “likes” the advertiser.<\/p>\n

The settlement was reached last month but made public this weekend.<\/strong> Facebook declined to comment on Saturday.<\/p>\n

The proposed class-action lawsuit, filed in federal court in San Jose, California, could have included nearly one of every three Americans, with billions of dollars in damages, according to previous court documents.<\/p>\n

In the lawsuit, Facebook Chief Executive Mark Zuckerberg was quoted as saying that a trusted referral was the “Holy Grail” of advertising.<\/strong><\/p>\n

In addition, the lawsuit cited comments from Facebook chief operating officer Sheryl Sandberg, saying that the value of a “Sponsored Story” advertisement was at least twice and up to three times the value of a standard Facebook.com ad without a friend endorsement.<\/strong><\/p>\n

U.S. District Judge Lucy Koh said the plaintiffs had shown economic injury could occur through Facebook’s use of their names, photographs and likenesses.<\/p>\n

The settlement arrangement is known as a cy-pres settlement, meaning the settlement funds can go to charity.<\/strong><\/p>\n

Source Reuters<\/em>
\n<\/p>\n","protected":false},"excerpt":{"rendered":"

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