Facebook's Beacon Settlement Upheld By 9th Circuit

A divided federal appeals court ruled on Thursday that Facebook can create a new privacy foundation in order to settle a class-action lawsuit stemming from its defunct Beacon ad program.

A panel of the 9th Circuit Court of Appeals voted 2-1 to uphold the settlement, approved in 2010 by U.S. District Court Judge Richard Seeborg. "We affirm the district court’s holding that the settlement was fundamentally fair," the majority wrote. The court specifically rejected arguments by opponents, who contend that Facebook will exert too much control over the new organization, called the Digital Trust Foundation.

The majority decision paves the way for Facebook to move forward with the new foundation, which is part of a $9.5 million settlement package. The deal calls for Facebook to pay $6.5 million to fund the Digital Trust Foundation, which will be directed by a three-person board that includes Facebook's Director of Public Policy, Tim Sparapani. The social networking giant also will pay the 19 consumers who filed suit amounts varying from $1,000 to $15,000, while around $3 million will go toward court costs and to the lawyers who brought the case.

Senior Circuit Judge Andrew Kleinfeld dissented from the decision. "This settlement perverts the class action into a device for depriving victims of remedies for wrongs, while enriching both the wrongdoers and the lawyers purporting to represent the class," he wrote.

 "Facebook deprived its users of their privacy. And now they are deprived of a remedy."

 

Recommend (3) Print RSS
All content published by MediaPost is determined by our editors 100% in the interest of our readers ... independent of advertising, sponsorships or other considerations.
  • TVEyes Infringes Copyright By Letting Users Download Clips, Judge Rules

    Handing television monitoring company TVEyes a partial defeat, a federal judge ruled on Tuesday that the service infringes copyright by letting its subscribers download clips. But U.S. District Court Judge Alvin Hellerstein in Manhattan also said in Tuesday's ruing that other components of the company's service are protected by fair ...
  • Mississippi Officials Planned To Enlist MPAA In 'Media Blitz' Against Google

    An official from the Mississippi Attorney General's office proposed that the Motion Picture Association of America help coordinate a "media blitz" against Google -- which would include arranging for bad press on NBC's Today Show and in News Corp's The Wall Street Journal -- according to new court documents. The ...
  • FCC Chairman Backs AT&T's Merger With DirecTV

    AT&T's $49 billion merger with DirecTV appears to be headed for regulatory approval, Federal Communications Commission Chairman Tom Wheeler indicated on Tuesday. "An order recommending that the AT&T/DirecTV transaction be approved with conditions has circulated to the Commissioners," Wheeler said in a statement. The proposed order includes two conditions related ...
  • Google Wins Reprieve From Mississippi Attorney General

    A federal judge has granted Google's request for an order enjoining Mississippi Attorney General Jim Hood from following enforcing a subpoena for “millions” of documents relating to copyright infringement by outside companies. The preliminary injunction, issued on Monday by U.S. District Court Judge Henry Wingate in Jackson, Miss., stays Hood's ...
  • FCC Enacts Sweeping Open Internet Rules

    The Federal Communications Commission voted on Thursday to impose net neutrality rules that prohibit broadband providers from blocking or degrading traffic and from creating online fast lanes. “Today history is being made by a majority of this commission as we vote for a fast, fair and open internet,” Chairman Tom ...
  • Nick.com Visitors Seek To Revive Privacy Case Against Google And Viacom

    Representatives for a group of young children are appealing a judge's decision to dismiss a lawsuit accusing Google and Viacom of violating a federal video privacy law. The notice of appeal, which was filed this week with the 3rd Circuit Court of Appeals, doesn't offer details about the potential arguments ...
  • Coca-Cola Talks "Total Market" Multicultural Marketing

    Segmenting remains a natural component of multicultural marketing. Yet, top brands increasingly want separate units to share insights, and a broader strategy. It’s a “total market” according to Juan Pablo Gonzalez, Senior Brand Manager of Hispanic Marketing at Coca-Cola. Among other benefits, “It gives up an opportunity to share resources,” ...
  • "50 Shades Of Skin" Isn't The Way To Approach Multicultural Markets

    When approaching multicultural consumer segments, marketers shouldn’t go thinking about “50 Shades of Skin,” according to Xavier Turpin, Director of Multicultural Marketing at Dunkin Brands. “It’s wrong to label all these segments based on skin color,” Turpin told attendees of MediaPost’s Engage: Hispanics conference, on Tuesday. “What’s more important is ...
  • Finding programmatic revenue -- or lead-generation value

    Programmatic may yield too low cost per thousand prices for many publishers. Still, others who even sell premium video inventory find value. During a OMMA Miami panel, Daren Trousdell, founder/chief executive officer of OneUp Sports says: “Programmatic is a lead-generation tool for us; we can see who is bidding on ...
  • Audi Taps MUH-TAY-ZIK I HOF-FER For Social

    Audi of America has tapped San Francisco-based MUH-TAY-ZIK | HOF-FER as its social media agency. Audi says it choose the agency Audi after seeing their work for clients like Netflix, Golden State Warriors, and Slavery Footprint.
>> Raw Archives