Facebook Proposes Fresh $20 Million Privacy Settlement

Alex Fitzpatrick
October 8, 2012
Facebook Proposes Fresh $20 Million Privacy Settlement

Facebook is offering a new $20 million settlement in a class action privacy lawsuit relating to "Sponsored Stories" advertisements, according to a report.

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The fresh settlement, filed Saturday, is offering up to $10 each to nearly 125 million affected users, reports Reuters.

Sponsored Stories, a Facebook advertising feature introduced in early 2011, caused users' names and profile pictures to be shown as endorsements in a brand's advertisements those users have "liked." Users cannot opt-out of the feature, a situation some users and watchdog groups considered to be a violation of privacy.

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An earlier deal, struck down by a judge in August, didn't provide any funds for users. Instead, it set aside a total of $10 million to be donated to various Internet privacy groups.

Some of that money may still find its way to those groups, but only if there are leftover funds after users make their $10 or less claims and their legal bills and other costs are paid. Additionally, a provision in the proposal says that the entire $10 million may still be donated to privacy groups if there's no economically sound way of distributing the $10 or less amounts.

SEE ALSO: $20 Million Facebook Privacy Settlement Rejected by Judge

The settlement still has to be approved by a judge before being finalized.

"We believe the revised settlement is fair, reasonable, and adequate and responds to the issues raised previously by the court," Facebook spokesman Andrew Noyes told Reuters.

Is the newly proposed settlement fair? If you're eligible, will you request a piece of the settlement?

This story originally published on Mashable here.