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Facebook settles `sponsored story` ad suit

Last Updated: Sunday, June 24, 2012 - 13:34

London: Social networking giant Facebook has been forced to allow users to opt out of their names being used in `sponsored stories`, according to a report.

The move came as part of a legal settlement with five angry members of the website.

The legal saga began last year, after five users were annoyed about their faces being used as part of Facebook`s `sponsored stories`, which allow companies to use the photos and names of people who have `liked` their brand in their adverts on the social network.

Facebook will now allow users the chance to opt out of their profiles being used in these adverts for at least the next two years, the Telegraph reports.

“Facebook will create an easily accessible mechanism that enables users to view the subset of their interactions and other content that have been displayed in Sponsored Stories,” the settlement ruled.

“Facebook will further engineer settings to enable users, upon viewing the interactions and other content that have been used in Sponsored Stories, to control which of these interactions and other content are edible to appear in additional Sponsored Stories,” it added.

According to the paper, an economist hired by the plaintiffs calculated that this change to the social network`s terms could cost Facebook approximately 103 million dollars.

Facebook has also agreed to pay out 10 million dollars to settle the suit, but the type of settlement means the payment will go to charity as opposed to the individuals who brought the case.


First Published: Saturday, June 23, 2012 - 16:43
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