Facebook Offers $20 Mn To Users As Settlement


Bangalore: If your face has appeared in any of the Facebook Sponsored Stories ads, then you are one in 125 million people, who are likely to get a compensation of upto $10 as a part of new proposed settlement by the social network, on a lawsuit accusing it of “violating the user rights.”

The case trace back to early May, when 5 users filed a class-action lawsuit against Facebook, for its sponsored stories ad, where Facebook used a user’s liking of a company’s page, to market that company to the user’s friends, without his permission. The sponsored stories were extremely successful, generating much high click-through rates compared to other Facebook ad types.

Facebook had earlier proposed a $10 million settlement to the lawsuit, where the company promised to donate it to charity after lawyer’s fees. However, the Judge Richard Seeborg rejected the settlement for being too low and for not providing funds for the actual Facebook users who were the injured parties.

But the new settlement offers $10 million for lawyers and the remaining $10 million to a fund for the affected users, who would each be able to get a maximum of $10 dollars if they apply.

“We believe the revised settlement is fair, reasonable, and adequate and responds to the issues raised previously by the court,” Andrew Noyes, a Facebook spokesman, said. Also as a part of the settlement, the social network has agreed to give more control to users over how their names and “likes” are used.

However, according to the VentureBeat, it is not yet confirmed, whether the judge will accept the proposition of $20 million- a mere 2 pennies for each affected user- considering the fact that  if all 125 million affected people had applied for the $10 payment, and if the total was uncapped, the damages would run as high as $1.25 billion!