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Tuesday, August 27, 2013
Judge Approves Facebook Privacy Settlement Over Ads

A U.S. judge on Monday granted final approval to Facebook's $20 million settlement of a lawsuit over targeted advertising despite objections that the deal did not go far enough to protect children's privacy.

Five plaintiffs filed a class action against Facebook in 2011, saying the social networking giant's "Sponsored Stories" program shared users' "likes" of certain advertisers with friends without paying them or allowing them to opt out.

Under the terms of the settlement, Facebook will pay $20 million to compensate class members, and promised to give users more control over how their content is shared.

Facebook charged advertisers nearly $234 million for Sponsored Stories between January 2011 and August 2012, court filings show.

Child rights advocates had argued that no minors should have their content shared with advertisers.

But U.S. District Judge Richard Seeborg in San Francisco wrote that the settlement, "while not incorporating all features that some of the objectors might prefer, has significant value."

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