Sarah Mirando  |  October 11, 2012

Category: Legal News

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Facebook Sponsored Stories SettlementUPDATE: A federal judge granted final approval to the Facebook Sponsored Stories class action settlement on August 26, 2013.

UPDATE 2: On Jan. 6, 2016, the 9th U.S. Circuit Court of Appeals upheld the lower court’s approval of the Facebook Sponsored Stories class action settlement.

Wait a second. Is that a pig I see flying? According to news reports, Facebook has agreed to pay up to $10 each to users who appeared on the social network’s “Sponsored Stories” advertising program without their permission.

The announcement comes two months after a federal judge rejected a proposed $20 million class action lawsuit settlement over Sponsored Stores, saying he had “serious concerns” with the deal because it would have provided $10 million in cash for advocacy groups, $10 million for attorneys, but nothing to users.

Under the revised Sponsored Stories settlement, submitted for U.S. District Judge Richard Seeborg’s approval on Saturday, Facebook and class action lawsuit attorneys are proposing the same $20 million payout – but this time to be shared by the charities, attorneys and the 125 million U.S. Facebook users who appeared in Sponsored Stories without consent.

If all of the 125 million potential Class Members fill out a Claim Form for the Sponsored Stories class action settlement, they would only receive about 2 cents each. However, this rarely – if ever – happens. The amount Class Members would likely receive is much higher, although it is capped at $10.

The new class action lawsuit settlement deal still requires Facebook to give its adult users the right to “control” but not eliminate how Facebook users their faces in ads in the Sponsored Stories program, and gives minors the ability to completely opt out.

The Facebook Sponsored Stories class action lawsuit accused Facebook of inappropriately using the names, photos and identities of users to advertise products without their permission, in violation of a California law that gives people the right to control the commercial use of their names and images.

While the payout to Facebook users won’t be much, the fact that the social network agreed to pay them anything is a huge deal. Facebook is notorious for only offering class action settlements that provide cash for advocacy groups and charities. In fact, most Facebook class action lawsuits are dismissed before they ever reach settlement negotiations.

A hearing on the proposed amended Sponsored Stories settlement is scheduled for October 25, 2012.

Keep checking Top Class Actions for updates on if Judge Seeborg approves the new Facebook Sponsored Stories Class Action Lawsuit Settlement, or sign up for our weekly newsletter.

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4 thoughts onNew Facebook Sponsored Stories Settlement Offers $10 Each to Victims

  1. Top Class Actions says:

    UPDATE 2: On Jan. 6, 2016, the 9th U.S. Circuit Court of Appeals upheld the lower court’s approval of the Facebook Sponsored Stories class action settlement.

  2. Shelia says:

    FYI: Christina Marie Hope has recently died a few months ago. Though you may want to know this ans delete her accoubt.. I know this bcz my son is married to her daughter.

  3. Anonymous says:

    I have been on facebook for 2 0r 3 yrs .. Never know what they are doing to stuff i post or pictures ..

  4. Anonymous says:

    There were numerous facebook “Friends” who had their images posted to my site claiming that they supported IPad, and other products. I screen printed one of the occurrences, and just deleted others. It wasn’t fair to those people or myself.

    There could have been other ways that they could have accomplished the same marketing.

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