Facebook must let users opt out of Sponsored Stories following lawsuit settlement

Facebook will have to give users more control over which of their actions can be promoted in Sponsored Stories, as part of a settlement for a suit claiming the social network violated California law by using people’s names and images along with advertisements without compensating them.

The change could have a negative impact on Facebook’s advertising business, which increasingly relies on Sponsored Stories over traditional ads that do not include social context of what a user’s friends Like.

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