August 26th, 2013

Judge approves Facebook privacy settlement over ads

By Dan Levine
Chicago (Reuters)

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.

A “Sponsored Story” is an advertisement that appears on a member’s Facebook page and generally consists of a friend’s name, profile picture and an assertion that the person “likes” the advertiser. The case has highlighted tension between privacy concerns and Facebook’s drive to monetize user content.

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