CourtSide - The FindLaw Breaking Legal News Blog

Facebook Settles Lawsuit Over Sponsored Stories

When a Facebook user "likes" a product or company, or posts something related to a product or company, Facebook will sometimes present those likes or posts to other users in that person's network as a paid promotion for the product or company.  A lawsuit challenged this practice, claiming that it violated users' right of publicity.  Facebook recently settled the lawsuit, agreeing to pay millions of dollars to various charities and provide notifications to users when their posts might be used as sponsored stories.  Facebook also agreed to create a tool to allow users to opt-out of of sponsored stories altogether.