an equal and opposite reaction
Case Details for "Facebook, Blockbuster Inc., Fandango Inc., Hotwire Inc., STA Travel Inc., Overstock.com Inc., Zappos.com Inc. and Gamefly Inc"
Facebook Inc. Agrees to pay $9.5M over advertising program
A group of consumers sued Facebook and several companies that participated in its Beacon advertising service in the U.S. District Court for the Northern District of California in August 2008. The plaintiffs claimed that Facebook shared information about users' activities with advertisers without their permission. Facebook was accused of collecting and sharing personal data about its users without users' permission to enhance the company's profitability and revenue through advertising. The plaintiffs also claimed that when consumers made a purchase on a Facebook advertiser's Web site, the consumers' personal information was shared with Facebook regardless of whether that person was a Facebook user.
In addition to Facebook, Blockbuster Inc., Fandango Inc., Hotwire Inc., STA Travel Inc., Overstock.com Inc., Zappos.com Inc. and Gamefly Inc. were named as defendants.
The plaintiffs sought damages for violations of the Electronic Communications Privacy Act, violations of the Video Privacy Protection Act, civil conspiracy, violations of the California Consumer Legal Remedies Act, violations of California's computer crime law under Section 502 of the California Penal Code, violations of the Computer Fraud and Abuse Act and unjust enrichment.
Under the terms of the settlement, "Facebook with establish and administer a cash settlement fund of nine million, five hundred thousand dollars ($9,500,000), which will be used to establish and operate a privacy foundation devoted to funding and sponsoring programs designed to educate users, regulators, and enterprises regarding critical issues relating to protection of identity and personal information on line through user control, and to protect users from on line threats." Although individual class members receive no direct compensation from the fund, all attorney fees and costs, as well as any enhanced awards to the named plaintiffs, will be paid out of the fund.
In addition, Facebook has agreed to terminate its controversial "Beacon" advertising program within 60 days of the preliminary approval date.
Posted on:2009-10-02
Company: Facebook, Blockbuster Inc., Fandango Inc., Hotwire Inc., STA Travel Inc., Overstock.com Inc., Zappos.com Inc. and Gamefly Inc
Class: none
Scope: Nationwide
Type of Case: Consumer
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