go-Digital Blog on Digital Marketing

Big Changes Coming To Facebook Ads On Heels Of Lawsuit

Source: http://www.businessinsider.com/big-changes-coming-to-facebook-ads-on-heels-of-lawsuit-2012-6

In a move worth about $103 million, Facebook has given users more control over the site’s “Sponsored Stories” ad feature.

Facebook has to agreed to give users more power over how their personal information is used for the ads, Reuters reported Thursday.

The advertising change comes as part of a settlement in a class action suit against the company. Five Facebook users claimed the site violated California law by publicizing users “likes” of advertisers without paying them or letting them opt out of the program.

The class action suit grew to include more than 100 million potential members.

“Sponsored Stories” are ads that appear on members’ pages, broadcasting other friends’ “likes” of certain advertisers, as well as the friend’s profile picture.

Attorneys for the plaintiffs say the advertising changes are worth $103.2 million, according to an economist’s analysis of the revenue ads bring to Facebook, according to Reuters.

The social media giant also agreed to pay $10 million to charity as part of the lawsuit’s settlement.

The company also has to shell out $10 million for plaintiff attorneys’ fees.

Please follow Law & Order on Twitter and Facebook.

Join the conversation about this story »