Watchdogs Ask Court To Reject 'Sponsored Stories' Settlement

Facebook's proposed $20 million settlement of a class-action lawsuit about “sponsored stories” would result in continued violations of laws protecting children's privacy, the advocacy group Public Citizen says in new court papers.

“The proposed settlement fails to remedy one of the core problems for which the plaintiff class is seeking relief: Facebook’s use of minors’ likenesses without the parental consent that is required by state law,” Public Citizen argues in a motion seeking to scuttle the settlement agreement. “The proposed settlement itself would perpetuate and purport to authorize ongoing violations of the laws of multiple states by authorizing Facebook to continue using minors’ likenesses without parental consent.” If approved by U.S. District Court Judge Richard Seeborg in the Northern District of California, the deal would resolve a class-action lawsuit alleging that Facebook's sponsored stories violates a California law about endorsements. That law says companies need people's permission before using their names or images in ads. In the case of minors, companies need parental consent. Facebook's sponsored stories program shows users' names and photos in ads to their friends.