AP/ June 17, 2012, 3:26 PM

Facebook settles sponsored stories suit for $10M

Stephen Lam/Getty Images

(AP) Facebook (FB) is paying $10 million to settle a lawsuit over ads that it called sponsored stories.

Facebook's service allowed companies to pay to retransmit users' activities to their friends' pages. If a user clicked the "like" button for a brand, the click might show up as a "sponsored story" on friends' pages. The ads started in early 2011.

Some Facebook users sued, saying that Facebook used their images for commercial activity. Facebook had argued that the plaintiffs did not show they were hurt by the practice.

Court documents from late last week say a settlement has been reached. Facebook attorney Michael Rhodes confirms Sunday that it's for $10 million, which will be given to charity. A judge still needs to approve the settlement.

Reuters first reported details of the settlement.

© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Popular on MoneyWatch

6 Comments Add a Comment
linkicon reporticon emailicon
omnibus66 says:
When you willingly give up all of your personal information, and then agree to have it open to the world, you have no complaint. Your privacy is one of your most valuable possessions, but some (many) feel that it more important to let everyone know what you did in the last five minutes. A high price to pay for thinking that anybody really cares what you did in the last five minutes.
reply
linkicon reporticon emailicon
knewsteerrrrr says:
"Some Facebook users sued, saying that Facebook used their images for commercial activity. Facebook had argued that the plaintiffs did not show they were hurt by the practice."

REALLY?? wow!! who'd a thought they'd ever do that!! Any doubt now WHY they demand all your personal VALIDATED info to get a "free" account?
reply
linkicon reporticon emailicon
Jaylah54100 says:
Why anybody would trust Facebook with anything, never mind personal information, is a total mystery to me.
reply
linkicon reporticon emailicon
rgage12 says:
I've been trying for months to get my account removed from Facebook, there is a glitch on their end. Customer service is zero.
reply
Jaylah54100 replies:
linkicon reporticon emailicon
If I recall correctly, you can "cancel" your account, but if you then attempt to log-in again, your account is "re-activated."

Which, of course, means that if you try to go check to make sure your account is gone, it reactivates.
knewsteerrrrr replies:
linkicon reporticon emailicon
You CANT remove your farcebook account, once you create it it is there in their database forever, all you can do is "deactivate" the dam thing, but you continue to get spams inviting you back, and if you check your acct by logging in, it re-activates it.
Ive told people for years to STAY AWAY from those data-miners and they never listen!