September 19, 2013
Facebook Inc. will pay $20 million to settle a class-action lawsuit over the social-networking website’s “Sponsored Stories” advertising service, according to an Aug. 26 San Francisco federal court order approving the settlement.
“Sponsored Stories,” a type of paid advertisement, wrongfully coupled site members’ profiles with companies or products they “liked” on Facebook, misappropriating their names and likeness for commercial endorsements in violation of California’s right-to-publicity and unfair-competition laws, the suit alleged.
Last August the court rejected a proposed settlement for lacking any payments to putative class members.
Under the newly negotiated terms, Facebook will pay $15 to each class member who filed claims and distribute the rest of the settlement amount to attorney fees and payments to Internet privacy organizations, the order said.
Fraley et al. v. Facebook Inc., No. C-11-1726, 2013 WL 4516819 (N.D. Cal., S.F. Div. Aug. 26, 2013).
Related Court Document on Westlaw or WestlawNext:
Order: 2013 WL 4494483