Content Section
SOCIAL FAIL Facebook to Pay $10M in Lawsuit Robyn beck, AFP / Getty Images

Facebook to Pay $10M in Lawsuit

Facebook will pay $10 million to settle a lawsuit filed by five Facebook users, court documents made public over the weekend revealed. The plaintiffs claimed that Facebook’s publicizing users “likes” of certain companies for its “Sponsored Stories” advertising feature without paying them or allowing them to opt out violated California law. “Sponsored Stories” are advertisements that act as a Facebook friend’s referral and include the person’s name, profile picture, and a claim that the person “likes” the product. The potential class-action lawsuit could have included one in three Americans and resulted in billions of dollars in damages.

June 17, 2012 5:40 PM