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Appeals Court Clears Facebook Privacy Settlement That Gives Nothing To Consumers

By Aviva Shen on September 21, 2012 at 3:00 pm

"Appeals Court Clears Facebook Privacy Settlement That Gives Nothing To Consumers"


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The Ninth Circuit Court of Appeals left in place Facebook’s recent settlement over its violation of members’ privacy rights, despite the fact that none of the $9.5 million settlement is going to the plaintiffs. The class-action lawsuit focused on Facebook’s Beacon service, which allowed Facebook to broadcast users’ transactions to their networks without permission. Most of the settlement will be used to establish an online privacy rights group, while the rest goes to legal fees. The three judge panel ruled 2-1 for Facebook, with one dissenting judge protesting that the settlement unfairly benefits Facebook and the plaintiff attorneys.


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