Paul Tassin  |  June 27, 2016

Category: Consumer News

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Facebook-class-actionParts of the Facebook user agreement violate a New Jersey consumer protection law, according to the plaintiff in a new Facebook class action lawsuit.

Plaintiff Jason Huhn claims that a section of the Facebook Statement of Rights and Responsibilities says that certain provisions may not apply in certain jurisdictions without specifically saying whether or not these provisions apply in New Jersey.

Huhn, himself a purported Facebook user, says the social network giant requires all users to agree to this statement when they sign-up for Facebook services.

According to the Facebook class action lawsuit, the Statement directly violates the New Jersey Truth-in-Consumer Contract, Warranty, and Notice Act. He says the TCCWNA provides that “[n]o consumer contract, notice, or sign shall state that any of its provisions is or may be void, unenforceable or inapplicable in some jurisdictions without specifying which provisions are or are not void, unenforceable or inapplicable within the State of New Jersey.”

Specifically, Huhn takes issue with Section 15.3 of the Facebook Statement in effect as of May 2016. This section purports to limit Facebook’s liability for consumer losses that may arise out of their use of Facebook. But the same section also says the purported limitation may not apply, because applicable law may not allow such a limitation of liability or damages.

Huhn points out that this section does not specifically state whether or not New Jersey law applies. He notes that Facebook is perfectly capable of addressing this New Jersey requirement in its Statement, since the same Statement includes a waiver of rights specific to California law.

Even though Facebook doesn’t charge its members a fee, Huhn says the website requires consumers to hand over certain valuable intellectual property rights. First, Facebook requires users to give the company a broad license to use any media the user uploads to the website, Huhn says.

Second, he says users give Facebook permission to use their “name, profile picture, content, and information in connection with commercial, sponsored, or related content.” For example, a Facebook advertising customer could pay the company to display a user’s name or profile picture, with no compensation for the user themselves.

By requiring members to give up these intellectual property rights in exchange for using the website, Facebook creates a consumer contract that falls within the jurisdiction of the TCCWNA, Huhn argues.

This Facebook class action lawsuit seeks to represent a plaintiff Class consisting of “[a]ll persons within the State of New Jersey who are currently members of Facebook.com.”

He is asking the court to certify the proposed Class and appoint Huhn as Class Representative and his attorney as Class Counsel. On his own behalf and that of the Class, he seeks statutory damages of $100 for each violation of the TCCWNA, plus court costs and attorney’s fees.

Plaintiff’s counsel is Jeremy M. Glapion of The Glapion Law Firm LLC.

The Facebook New Jersey Consumer Rights Class Action Lawsuit is Jason Huhn v. Facebook Inc., Case No. 2:16-cv-03681, in the Superior Court of New Jersey for Morris County.

UPDATE: On Jan. 9, 2017, a federal judge dismissed with prejudice a putative class action accusing Facebook of violating New Jersey’s Truth-in-Consumer Contract Warranty and Notice Act (TCCWNA) by requiring New Jersey residents to resolve disputes with the social media giant in California.

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2 thoughts onFacebook Class Action Says User Agreement Violates N.J. Law

  1. charles A wilkins says:

    Banned for face book forever, no free speech, communist China president, face book is now a pawn of the far left. States doing nothing to protect free speech.

  2. Top Class Actions says:

    UPDATE: On Jan. 9, 2017, a federal judge dismissed with prejudice a putative class action accusing Facebook of violating New Jersey’s Truth-in-Consumer Contract Warranty and Notice Act (TCCWNA) by requiring New Jersey residents to resolve disputes with the social media giant in California.

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