Facebook Settles Suit Over 'Likes' Ads for $10M

Users don't want personal images used for profit
By Newser Editors and Wire Services
Posted Jun 17, 2012 3:45 PM CDT
Facebook CEO Mark Zuckerberg attends the Allen & Company Sun Valley Conference on July 8, 2011 in Sun Valley, Idaho.    (Getty Images)

(Newser) – Facebook 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 today that it's for $10 million, which will be given to charity. A judge still needs to approve the settlement.

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