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This is an archive article published on June 18, 2012

Facebook pays 10 mn to settle ad suit

Facebook will pay USD 10 million to settle a lawsuit from users who claimed their names,images and other information were improperly used in advertising described as "sponsored stories," court documents showed.

Facebook will pay USD 10 million to settle a lawsuit from users who claimed their names,images and other information were improperly used in advertising described as 8220;sponsored stories,8221; court documents showed.

According to documents dated earlier this month and available online,Facebook and a series of plaintiffs submitted an agreement to a federal judge in San Jose,California.

The lawsuit was filed in 2011 by a group led by a Washington state Internet user named Angel Fraley. The suit alleged that Facebook users,including minors,had their names and likenesses used in ads without their permission.

The suit contended Facebook improperly used advertising when a member indicated he or she 8220;liked8221; a particular company.

The 8220;like8221; was passed on to the friends of those members as an implied endorsement of a company or product. In some cases,the profile or picture was used in the 8220;sponsored stories8221; that the suit said was a form of advertising.

A mediator assigned to the case said the agreement included the 8220;substantial sum8221; of USD 10 million 8220;to be distributed to groups whose charters set out actions and programs relevant to advocacy related to the purposes for which the case was brought.8221;

A settlement in the case was unveiled earlier this month but terms were not disclosed.

 

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