Facebook to Pay $10 Million to Charity to Settle Ad Lawsuit

At least one of Facebook’s legal problems has been cleared up: The social network has agreed to pay $10 million to charity to settle a lawsuit over its use of “social” advertising.

According to Reuters, the settlement was reached last month but made public this weekend.

The lawsuit was over a type of Facebook ad called a “Sponsored Story,” which is generated after a Facebook user clicks the “Like” button. An ad would then appear on a friend’s page, asserting that the person “Likes” the advertiser.

In December, a judge denied Facebook’s request to throw out a lawsuit brought by five Facebook members. The plaintiffs alleged that the social networking site violated California law by publicizing users’ “Likes” without paying them or giving them a way to opt out.


Latest Video

View all videos »

Search »

The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald