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Facebook will Pay $20 Million to Settle Sponsored Stories Privacy Suit

Aug 27 2013, 3:41am CDT | by , in News | Technology News

Facebook will Pay $20 Million to Settle Sponsored Stories Privacy Suit

US Judge has approved Facebook's 20 million settlement for 'Sponsored Stories' privacy lawsuit that had been pending since two years back. It has to pay in excess of $15 per user to a group which claimed that its privacy was violated by the giant social network.

Facebook has finally decided to give the devil its due. After two protracted years of litigating in the court of law regarding its Sponsored Stories Program, it coughed up $20 million and called it quits. The opposing group which got the money claimed that Facebook had invaded its privacy which it jealously guarded. 

Furthermore, Facebook will have to spend at least $145 million just to make some necessary changes in the program. These changes will allow users greater control over the sharing of content. The main problem was the utilization of an image of the user as the main identifier on the site. However, this is illegal. How Facebook handles the situation remains to be seen.

The settlement was finally reached after much bickering. It had gone on long enough. A firm the size of Facebook can easily afford the $20 million cash delivery required to get the opponent out of its way. $9 million of this went to the user base who utilized the service. 

The rest of the money was divided up between lawyers and given away in the form of gifts to non-profit organizations. What that means is that each user will receive $15 as compensation money. Facebook is no ordinary site. The brainchild of Mark Zuckerberg, this humongous social network connects virtually everybody to everyone else on the planet. 

Source: Reuters

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