Facebook Settles Class-Action Suit Over Users' Names, Photos In Sponsored Stories For $10M

Facebook agreed to settle a class-action lawsuit filed in December over the use of members’ likenesses in sponsored stories, and it will pay out $10 million to charities, according to reports.

Facebook agreed to settle a class-action lawsuit filed in December over the use of members’ likenesses in sponsored stories, and it will pay out $10 million to charities, according to reports.

The Telegraph reported that Facebook reversed course after declaring when the suit was filed:

We are reviewing the decision and continue to believe that the case is without merit.

The suit was based on California’s Right of Publicity Statute, which prohibits the non-consensual use of another person’s name, voice, signature, photograph, or likeness for advertising purposes, but Facebook contended that when one of its users likes a page or product, he or she is effectively endorsing the brand and giving their consent for the use of their name and photo.

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