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Facebook wins preliminary OK of 'Sponsored Stories' settlement

Facebook has won preliminary approval of a proposed settlement of a class-action lawsuit filed over the social network's use of members' names and images in advertising.

Under the settlement's terms, Facebook agreed to pay $10 to each user who objected to being included in the social network's "Sponsored Stories" advertisements, as well to initiate user controls that allow people to be excluded from the program.

U.S. District Judge Richard Seeborg said today that the settlement "has no obvious deficiencies" and "appears to be the product of serious" negotiations between lawyers … Read more

Judge mulls over Facebook's offer in 'sponsored stories' suit

It looks like Judge Richard Seeborg may be turning a corner in the lawsuit over Facebook's "sponsored stories" feature. He said today that he would review the social network's second settlement offer and would issue a ruling "very shortly," according to Reuters.

The crux of the case focuses on Facebook's use of advertising in its sponsored stories. The original five plaintiffs, which aimed at representing more than 100 million members in a class-action suit, claimed the social network violated users' right to privacy by publicizing their "likes" in advertisements without asking … Read more

Facebook redoes privacy settlement, offers cash to users

Facebook is taking another shot at a "Sponsored Stories" settlement, agreeing to pay affected consumers and provide a simpler way to review all Sponsored Stories interactions.

The social-networking giant first tried to settle the case several months ago, but a judge rejected the settlement in August, saying he had "serious concerns" with the pact. In particular, the judge wondered how the parties determined the $20 million settlement amount to be paid out by the social network. The amount included $10 million in legal fees for the plaintiff attorneys.

Under the new agreement, filed Friday, Facebook has … Read more

Judge rejects Facebook's 'Sponsored Stories' settlement

A judge has rejected Facebook's settlement of a class-action suit regarding an ad feature that publicizes users' "Likes" of products and services to their Facebook friends but doesn't pay the users for the endorsements or allow them to opt out.

U.S. District Judge Richard Seeborg in San Francisco, who had expressed skepticism about the proposed "Sponsored Stories" settlement at the beginning of August, rejected it yesterday, saying he had "serious concerns," according to a report in Wired. And he specifically wondered how the amounts to be paid out by the social … Read more

Judge casts doubt on Facebook 'Sponsored Stories' privacy deal

A U.S. District Court judge has some concerns about the settlement Facebook struck over privacy concerns with its "Sponsored Stories" feature.

Judge Richard Seeborg yesterday heard the details of a settlement Facebook had inked with plaintiffs in a suit related to the way in which the social network was displayed Sponsored Stories. The five plaintiffs, which aimed at representing over 100 million members in a class-action suit, argued that by displaying their likeness and pages they had liked in a Sponsored Stories listing across the site, Facebook was violating their privacy. However, back in May, the parties agreed to a $20 million deal … Read more

Judge in Facebook 'sponsored stories' lawsuit recuses herself

The federal judge presiding over Facebook's "sponsored stories" lawsuit has abruptly quit the case a day before a scheduled hearing to discuss a proposed settlement.

U.S. District Judge Lucy Koh filed papers today to recuse herself from the lawsuit, which claimed the social-networking giant violated California law and plaintiffs' right to privacy by publicizing their "likes" in advertisements without asking them, compensating them, or allowing them to opt out.

Koh's one-page court filing (see below) said the case would be referred to another U.S. District Court judge by the assignment committee. The … Read more

Facebook ads make their way to Zynga's site

Zynga users may have noticed something unfamiliar on the Web site -- Facebook ads have crept over to the gaming platform's site, filling the space that used to house Google ads.

The change was first noticed by Inside Facebook and it has the media speculating up a storm about whether this is the beginning of Facebook's advertising service empire.

Now when you connect with Facebook on Zynga.com, you'll see personalized ads and sponsored stories just like they appear in Facebook, the social network says. According to Facebook, you'll see only sponsored stores about activity that'… Read more

Facebook to give users more control over controversial ads

If a judge approves Facebook's settlement of a class-action lawsuit regarding "sponsored stories," the social network will give users more control over the advertising tool, which features users' profile photos and other information in ads for businesses and products the users have "Liked."

Reuters reported today that the settlement agreement includes giving users the ability to determine what, if any, user information can be featured in ads, and adding new language to Facebook's guidelines informing users of sponsored ads, according to court documents filed Wednesday. TechCrunch reported that user opt-outs will apparently apply on … Read more

Facebook to pay millions to charity in ad settlement

The terms of a legal settlement regarding Facebook's "sponsored stories" feature emerged this weekend, according to a report: the social-networking juggernaut agreed to pay $10 million to charity to lay the matter to rest.

Reuters reported the news today, drawing from court documents it said were just made public.

The suit -- in which five Facebook users claimed the site violated California law and their right to privacy by publicizing their "likes" in advertisements without asking them, compensating them, or allowing them to opt out -- was settled toward the end of May.

U.S. … Read more