Facebook agreed to settle a class-action lawsuit filed in December over the use of members’ likenesses in sponsored stories, and it will pay out $10 million to charities, according to reports.
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Facebook settled a proposed class-action lawsuit based on the principle that its sponsored stories turn its users into spokespeople and, as such, they should be compensated. Terms were not disclosed.
The issue of Facebook using its members’ likenesses in advertising returned to center stage with a ruling by a court in California that a class-action suit against the social network can proceed.
