Facebook to allow changes to ad network in order to settle lawsuits
Big Face has been dealing with a lawsuit filed by five users over the use of their pictures and names in what are called Sponsored Stories. Those are advertisements that appear in the news feed and that have used Facebook members who have Liked the product being advertised. The suit argued that this amounted to endorsement and uncompensated endorsement at that. Although it was only five people suing, hundreds of millions of people have been used in this capacity on Facebook.
So the company will make changes.
Under the terms of a settlement agreement filed on Wednesday, Facebook members will be able to control which content can be used for Sponsored Stories. Facebook agreed to maintain these changes and other new disclosures for at least two years, according to court documents.
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