Facebook has lost a proposed settlement offer to salvage itself from a class action lawsuit that claims the social network failed to agree with members’ rights through its “sponsored stories” ad feature.
US District Judge Richard Seeborg turned down Facebook’s offer because of various concerns, which include an agreement to pay $10 million to charity but does not extend money to the complainants.
Reuters reported that Seeborg said the social networking company and plaintiffs’ lawyers could change their arrangement to deal with his concerns.
“We continue to believe the settlement is fair, reasonable, and adequate. We appreciate the court’s guidance and look forward to addressing the questions raised in the order,” said a spokesperson from Facebook.
The social network said before that it would pay up $10 million to charity, as settlement for the lawsuit after Facebook used members’ photos in sponsored ads without their permission. However, the judge still needs to approve the agreement, and he looks nowhere near from giving permission to proceed.
Last year, five aggrieved users sounded off against Facebook for using their mug shots in the company’s “sponsored stories”, which was settled in May but made publicly available in June.
The complainants filed a lawsuit in December 2011 at a federal court in San Jose, California that claimed unauthorized use of photos containing their faces is in violation of California’s privacy law.
The five users were specifically bothered that Facebook made their likes public without an option to disable it or receiving payment for the damage it caused.
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