Facebook settles Sponsored Stories dispute

Originally Published: April 11, 2019 Last Updated: April 11, 2019
Summary:

In 2011, a lawsuit filed against Facebook known as 'Fraley vs.Fraley' cited violations against the social network under both the federal and California state law. It concerned "Sponsored Stories" that used Facebook members' names and photos in advertisements without their permission. The case was settled in 2013, with settlement cheques mailed to class members in November 2016.

Allegations:
  • The 2011 case alleged that when Facebook took a "like" of a user under the age of 18, and then used that data, name, and image in a sponsored story without the parents' permission it was an illegal act.
  • In 2013, an agreement was reached which was approved by United States District Judge Richard Seeborg. The Sponsored Stories feature was eventually eliminated in 2014 but the new deal allowed the features of it to be incorporated into other ads.
  • Public Citizen and other groups argued against the 2013 judgement calling it worse as it allowed the platform to continue using user data, even from minors, as a way to sell other forms of targeted advertising.
Defence:
  • Facebook agreed to a settlement of 15$ cheques to class members. It also included clearer language regarding the ability of minors, as well as their parents, to prevent minors from appearing in advertisements.