Facebook To Pay $10 Million To Settle ‘Sponsored Stories’ Suit

Posted on Jun 18 2012 - 6:24am by Editorial Staff

Reuters over the weekend reports that the social giant has agreed to pay $10 million to charity in order to settle a lawsuit which was accusing the site of violating user’s rights to control the use of their own names, photographs, and likeliness in the form of “Sponsored Stories” without paying the users whose profile being used for the feature as well as it is not giving users any option to opt out in any way. The settlement according to the publication was reached last month but was made public this weekend.

Well, if in case you don’t know what “Sponsored Story” is? A “Sponsored Story” is an advertisement that appears on a member’s Facebook page and generally consists of another friend’s name, profile picture and an assertion that the person “likes” the advertiser.

We have contacted Facebook for comments and as soon as the company replies back, we will update the story.

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.