Facebook Loses Lawsuit Over Sponsored Stories

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Facebook Sponsored Stories

Facebook Shells Out $20 Million To Settle Sponsored Stories Privacy Suit.

The social networking giant Facebook has successfully resolved a 2011 privacy suit, albeit, at a cost of $20 million. A Reuter report says that Facebook had to pay the said amount to class action group, which filed a lawsuit against Facebook’s Sponsored Stories program in 2011.

The court has also directed Facebook to alter the program to enhance user control over content. This could cost the Social Network a whopping $145 million.

What’s The Issue With Sponsored Stories?

Facebook, currently, uses a user’s likeness to promote advertising. It displays the profile image and name of the users with the branding pages, which the users had ‘liked’. This, however, is illegal as per a California Civil Code. With the explicit consent of the user, Facebook can continue this program.

Nevertheless, Facebook will have to revise its program to comply with the settlement guidelines. It is worth mentioning that the Sponsored Stories has fetched Facebook around $234 million in less than 1.7 years.

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