Facebook to pay $10 million to settle lawsuit

  • Facebook has agreed to pay $10 million to charity to settle a lawsuit that accused the site of violating users' rights to control the use of their own names and photographs.

    The lawsuit, brought by five Facebook members, alleged the social networking site violated California law by publicizing users' "likes" of certain advertisers on its "Sponsored Stories" feature without paying them or providing an the option to opt out.

    A "Sponsored Story" is an advertisement that appears on a member's Facebook page and includes another friend's name, profile picture showing the person "likes" the advertiser.

    The agreement is known as a cy-pres settlement, which allows settlement funds to be given to charity.

    It was reached last month but was made public this weekend.