When you "like" something on Facebook, your name and face can be used in sponsored stories. But that will change, thanks to a court ruling earlier this year. But the settlement attached to that ruling was struck down by U.S. District Judge Richard Seeborg on Thursday, saying the $10 million amount was not enough.
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The year-old lawsuit will give adult Facebook users more control over how they appear in these ads (minors can already opt out). This week, the judge for the case turned down the settlement amount: If a $10 million payout, why not $100 million?, he asked.
U.S. District Judge Richard Seeborg declined to approve the settlement that would give $10 million to charity and $10 million to the lawyers suing Facebook.
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“I’m not suggesting there is anything wrong with $10 million [for charity],” he said. “My question is: Why is it $10 million?”
A Facebook attorney, though, said the settlement has value for users and the social network is willing to settle to avoid the "risks of litigation." A $100 million payout was out of the question for a case Facebook could win, the attorney said.
On its first earnings call last month, Facebook said it earns $1 million in revenue every day from sponsored stories, its primary social ad product.
How do you feel about Facebook's sponsored stories? What do you think would be a reasonable settlement amount?
[via Wired]
Thumbnail image courtesy of iStockphoto, -Oxford-
This story originally published on Mashable here.
