Facebook Opposes Teens Bid To Revive 'Sponsored Stories' Case

Teen users under 18 who agree to Facebook's terms -- including provisions relating to “sponsored stories” ads -- are bound by those conditions, the company argues in new court papers.

“Under California law, a minor ordinarily may 'make a contract in the same manner as an adult,' with certain limited exceptions,” Facebook says in papers filed on Monday with the 9th Circuit Court of Appeals. The company adds that the exceptions, which are spelled out in a California law about minors, don't apply to agreements relating to its terms of service.

The company's papers come in response to an appeal by a group of teens who are urging the 9th Circuit to revive a lawsuit accusing Facebook of violating minors' rights by using their names and images in social ads. The teens say that Facebook has misappropriated their identities for commercial use.

Earlier this year, U.S. District Court Judge Richard Seeborg dismissed the teens' lawsuit, ruling that Facebook's “Statement of Rights and Responsibilities” protected the company from liability. Those terms provide that users who “like” products or services also consent to have their names and photos used in ads.

The minors are asking the 9th Circuit to rule that they were too young to enter into enforceable agreements with Facebook. Seeborg rejected the teens' argument in March. He ruled that minors can only void certain types of financial agreements -- like real-estate deals -- due to their age. Seeborg also indicated that being featured in an ad is a fair exchange for the ability to use the social networking service.

Facebook is urging the 9th Circuit to affirm Seeborg's ruling. The company argues that the teens' agreement was valid. Facebook also says that even if the teens can back out of their agreement to the statement of rights and responsibilities, doing so would require them to stop using the service.

“Plaintiffs here contend they should be allowed to continue to receive the benefits of using Facebook,” Facebook says in papers filed on Monday with the 9th Circuit Court of Appeals. “That is akin to a minor entering into a contract to rent a bicycle, then ceasing his monthly payments, disaffirming the contract, and then demanding that he be allowed to keep the bicycle.”

Internet legal expert Venkat Balasubramani says the teens could have a hard time prevailing in court, if they continued to use the social networking service after learning about sponsored stories. The teens “have an easy remedy” -- which is to delete their accounts -- if they're concerned about their names or images being used by Facebook in the future, he says.

The minors who filed this appeal opted out of a class-action settlement stemming from sponsored stories. That agreement -- which also faces a challenge in the 9th Circuit -- calls for Facebook to pay $20 million to resolve allegations that “sponsored stories” ads misappropriated users' identities.

That settlement allows Facebook to continue using members' identities in ads, provided the company tweaks its terms of service. Facebook said this year that it was ending the “sponsored stories” program, but will still show users' names and photos in social ads.

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