A federal judge gave preliminary approval Monday to a negotiated settlement of a class-action lawsuit over Facebook's use of its members' names and photos in online advertising, while a public interest lawyer vowed to continue pressing objections that the deal fails to protect minors.
Under the settlement, Facebook would set aside $20 million to provide a cash payment of up to $10 each to Facebook users who objected to their names being used in so-called "Sponsored Stories" advertisements. Facebook also agreed to create new user controls that will let people opt out of the program.
U.S. District Judge Richard Seeborg ruled Monday that the settlement meets the requirements for preliminary approval, adding in a written order that it "has no obvious deficiencies" and "appears to be the product of serious" negotiations between lawyers for Facebook and a group of users who filed suit against the ad program. Both sides told the judge last month they felt the agreement was a fair settlement.