$20 Million Facebook Privacy Settlement Rejected by Judge

A federal judge has rejected Facebook's settlement offer in a class-action privacy lawsuit over the use of users' names and faces in "Sponsored Stories" advertisements.

With Sponsored Stories, which rolled out in January of 2011, your "likes" on a brand's page can result in your name and profile picture being shown as endorsements in that brand's advertisements on the site. Users were not given an option to opt-out of the feature.

The lawsuit, filed last year, alleged that the practice is a violation of Facebook users' privacy.

Under Facebook's proposed deal to settle the lawsuit, it would have given users more control over their "likes," including the opportunity for users under th…
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