Previously, Facebook’s “Like” button allowed Facebook to use the name and photo of the user to plug the product liked. However, Facebook has recently settled a class-action lawsuit in which Facebook must make it clear to users what clicking “Like” does and allowing the user the chance to decline endorsing the product. Users will now know which of their actions will be used to generate advertisements. Additionally, users under 18 will have to have a parent decide if the child will be used in the ad.
Sponsored Stories, which places the name and picture of the Facebook user who has clicked “Like” is the preferred advertising method by Facebook. Until now, users were not aware that liking a product would benefit Facebook.
The terms of use have to explain that Facebook has permission to use the users’ name, profile picture and content by clicking “Like”. New settings will be implemented that will let users decide which “Like”, “Listen” or “Read” will appear in Sponsored Stories. Facebook has six months to implement the changes.
Per the settlement agreement, Facebook agreed to donate $10 million to various nonprofit organizations, as well as pay $10 million in plaintiffs’ legal fees.
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