Jun 18, 2012

Facebook to Pay $10 Million to Charity to Settle Lawsuit

Social Networking giant Facebook has agreed to pay $10 million to Charity to settle a lawsuit brought upon them by five Californian citizens.

According to reports, the lawsuit alleged that Facebook had violated the Californian law by publicising the pages "liked" by the plaintiffs on its "sponsored stories" tab without seeking their permission for the same or paying them and/or giving them an option to opt out.

It is a common practice for Facebook to show advertisements on the "sponsored stories'' tab to their members along with the names and the profile pictures of their friends who have "liked" the said advertiser's page. Now, the lawsuit might force Facebook to reconsider this advertising strategy.

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