Facebook is paying $10 million to settle a lawsuit over ads that it called sponsored stories.
Facebook’s service allowed companies to pay to retransmit users’ activities to their friends’ pages. If a user clicked the “like” button for a brand, the click might show up as a “sponsored story” on friends’ pages. The ads started in early 2011.
Court documents from late last week say a settlement has been reached. Facebook attorney Michael Rhodes confirms Sunday that it’s for $10 million, which will be given to charity. A judge still needs to approve the settlement.
Reuters first reported details of the settlement.
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