It’s round two for Facebook Inc (NASDAQ:FB) and its attempts to settle a class action suit about its Sponsored Stories feature. The suit alleges that the social network violated its users’ right to privacy. Many users were upset that the site used their “Likes” of various companies as advertisements without paying them, or even making it possible for them to opt out of the feature.
Judge Richard Seeborg rejected the social network’s first attempt to settle the lawsuit earlier this year. That offer would have made it possible for Facebook users to have more control over their “Likes” and other personal information, although it would not prevent their personal information from being used. Under that settlement offer, Facebook Inc (NASDAQ:FB) would pay $10 million in legal fees, and another $10 million to non-profit entities.
Seeborg said he rejected that offer because it didn’t pay anything to users for the use of their “Likes” as Sponsored Stories. Today’s offer also amounts to $20 million, although it would also pay the more than 100 million Facebook Inc (NASDAQ:FB) users in the U.S. up to $10 per unapproved “Like” that got used in any of the site’s Sponsored Stories. Any money that’s left after those payments would go to legal fees first and then non-profit organizations, if there is anything left after that.
Facebook Inc (NASDAQ:FB) also says it will create a feature that would give users access to Sponsored Stories their information appears in and choose to opt out of them if they want. According to Reuters, Judge Seeborg says he will rule on the settlement “shortly.” News reports say when this latest settlement offer was introduced to him, he was “less critical” about it than he was about the first offer.
