Facebook to pay millions to charity in ad settlement

The terms of a legal settlement over Facebook's "sponsored stories" feature have emerged about a month after the agreement. The social-networking giant will pay millions to charity.

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. District Judge Lucy Koh wrote that "California has long recognized a right to protect one's name and likeness against appropriation by others for their advantage," Reuters reported.

The proposed class-action lawsuit could have included nearly one of every three Americans, with billions of dollars in damages, according to the news agency, which cited previous court documents.

About the author

Edward Moyer is an associate editor at CNET News and a many-year veteran of the writing and editing world. He enjoys taking sentences apart and putting them back together. He also likes making them from scratch.

 

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