 |
| Meta wants to end a decade-long legal battle |
Meta, the parent company of Facebook, has agreed to pay $90 million to settle a decades-old class-action lawsuit alleging practices that allow the social network to track users' online activity even after they leave the platform.
The solution is one of the biggest in the history of a social media company. But it probably won't affect the internet giant's $590 billion net income.
If approved, the agreement would also rank among the top 10 privacy lawsuits in the United States.
A Meta spokesperson said: "It has been more than a decade since this has happened and it is in the best interest of our community and our shareholders to reach a settlement and we are pleased to have resolved this issue."
The company denies any wrongdoing in the deal. The 2012 case stems from a Facebook 2010 update called Open Graph, which was designed to give users' friends a deeper insight into their online activities and interests.
As part of the update, the company has introduced a button plugin that looks like a website. This button allows users to click on it to announce their interests on the Facebook network.
The Like button plugin also enables Facebook to use cookies to collect data about user activity on this website, including, for example, websites visited and items they view or purchase, regardless of whether the user has used the button or Until the button uses it knows it's there.
Meta pays $90 million to end privacy lawsuit
To address privacy concerns, the company said at the time that it would not collect user identification cookies related to user activity on partner sites if you opt out of Facebook.
However, the researchers found that the company continues to collect some cookies about users' online activities even after users leave the platform, in violation of its promises.
Facebook initially defended the practice after announcing the issue in 2011. However, it later released patches and clarified its policies.
Members of the case accused the company of breach of contract. Litigation has been going on for years. After prosecutors filed a third, updated complaint in 2017, the judge agreed to Facebook's request to dismiss the case.
The plaintiffs appealed the ruling, which was partially overturned by the US Court of Appeals for the Ninth Circuit in 2020. It ruled that the collection of Facebook data had caused economic damage and that data collection required the user's explicit consent in the sense of wiretapping.
Facebook appealed to the Supreme Court, which refused to hear the case and opened the door for both parties to begin negotiations for a settlement.
The comparison applies to Facebook users in the United States with accounts between April 22, 2010, and September 26, 2011. You visit a non-company website that displays a Like button.
As part of the settlement, META agreed to delete user data collected through this practice.