In July 2022, Meta (formerly known as Facebook) agreed to pay $90 million to settle a decade-old privacy lawsuit. The lawsuit alleged that Facebook violated users’ privacy by tracking their internet activity even after they logged off the Facebook platform.
The settlement means that potentially millions of Facebook users could receive a portion of the payout, but the exact amount each user gets depends on how many people file valid claims. With a settlement fund of $90 million and potentially hundreds of millions of users, each check is likely to be very small.
Who is eligible for payment in the settlement?
The settlement applies to Facebook users in the United States who between April 22, 2010 and September 25, 2011 visited non-Facebook websites that displayed the Facebook “Like” button. Their browsing activity during this time period was tracked and collected by Facebook without the users’ consent, according to the lawsuit allegations.
To be eligible for payment, class members will need to file a valid claim form by the deadline (to be determined). The number of Facebook users who submit claims will determine how much each person receives.
How much will each claimant receive?
The short answer is that the payout amount per person is still unknown and will depend on the total number of valid claims filed.
With a $90 million settlement fund, ifhypothetically 100 million users submitted valid claims, each person would receive roughly 90 cents. But if only 1 million users submitted valid claims, each person would receive around $90.
The reality will likely be somewhere in between. Facebook had around 160 million monthly active users in the U.S. at the time period in question, but not all of those people will file claims. Some may be difficult to notify, while others may not take action even after being notified.
Plaintiffs’ attorneys in the case have said the average amount could be between $15 to $20 for each person with a valid claim. Again, this is just an estimate – the actual amount could differ depending on how many claims pour in.
Settlement fund calculation
The $90 million settlement fund will first be used to pay court-approved attorney fees and lawsuit expenses. What remains will be distributed equally among all class members who file valid claims.
Here’s a look at how the per-person payment amount will be calculated:
- Settlement fund: $90 million
- Minus attorney fees and expenses (to be determined)
- Equals net settlement fund (estimated $64 million)
- Net settlement divided by total number of valid claims = payment amount per person
The more claims that are filed, the smaller each person’s share of the net settlement fund will be.
How can you file a claim?
The plaintiffs’ lawyers will set up a claims process website and claims deadline once the court grants final approval of the settlement.
To file a claim, class members will need to provide their name, address, and email or phone number associated with their Facebook account between April 2010 and September 2011.
If you are eligible, make sure to watch for updates about the claims process timing and instructions. The website will be the main way to file a claim.
You can also reach out to the claims administrator by email or mail closer to the claims deadline:
- Email: [email to be provided]
- Mail: [address to be provided]
When will checks be mailed?
It may take months after the claims deadline for checks to go out. The claims administrator first needs to process all claims and calculate the proper payment amount per person based on the total claims.
The lawyers estimate that eligible class members who file valid claims could receive their payments sometime in 2024, possibly by early to mid-2024 if everything moves smoothly.
However, appeals or other delays could push the timeline back. Class members should expect to be patient after filing their claims. Check the settlement website regularly for the most current updates on the timing.
What if you did nothing in the lawsuit until now?
If you took no action previously in this lawsuit but meet the class eligibility criteria described earlier, you can still file a claim once the process opens. Taking no action earlier does not preclude you from making a claim down the road. Payments will be made based on valid claims filed, regardless of previous activity.
Key points
- You will not receive anything if you do not file a timely claim by the deadline.
- Pay attention to the claims filing instructions and website when launched.
- The payment amount depends largely on how many valid claims are ultimately filed.
What was this privacy lawsuit about?
The origins of this case trace back more than a decade. In 2011, Facebook user Paul Duguid brought a case alleging privacy violations related to the company tracking user data after logout. The court later consolidated it with several other lawsuits of Facebook users making similar claims.
The core issue was that when people visited third-party websites that had Facebook plugins (like the Like or Share buttons), Facebook placed cookies on their browsers that continued tracking their activities even after they logged out of Facebook. Users argued this violated federal and state privacy laws.
Facebook countered that it adequately disclosed its practices and that it fixed the specific browser cookie issue in 2011. However, after nearly 12 years of litigation, Facebook agreed to settle the case amid the claims that it collected data without proper notice or consent.
The settlement means Facebook will pay $90 million into a fund for class members, but the company does not admit any wrongdoing. It has already changed its tracking practices many times over the years.
Why did it take so long to reach a settlement?
A key reason this case lasted over a decade is that the litigation bounced between different courts on the complex issue of whether Facebook users’ claims could legally proceed as a class action.
Facebook first succeeded in blocking it from advancing as a class action in 2017. But an appeals court overturned that ruling in 2020 and said the case could proceed on a class basis. That cleared the way for a settlement.
Still, negotiating a settlement took another two years after that appeals decision. The courts had to ensure proper class notification and approve the settlement terms for it to become final.
It’s not uncommon for privacy class actions against tech companies to drag on for many years before settlement due to the complex legal and technical issues involved. The lengthy process frustrated some class members, but the settlement now delivers a resolution.
Could you get more money by suing Facebook individually?
It’s highly unlikely any class member could receive more money by suing Facebook individually over the same user tracking issues rather than joining this settlement.
Federal courts have high standards for privacy violations claims, and Facebook would have strong legal defenses. Facebook says it had consent based on its data policies. Even if an individual could prove a privacy violation, the potential recovery would likely be very small.
By pooling together millions of claims in a class action, the case gained leverage for a large settlement. Participating in the settlement provides the best potential financial recovery for class members. Of course, you are free to consult your own lawyer if you wish to consider other options.
Key advantage of participating in the settlement
- Millions of claims together can lead to a meaningful settlement payment, even if small for each person.
Could Facebook face other similar lawsuits in the future?
The settlement resolves claims related to certain Facebook data practices from 2010-2011 targeted in this specific case. It does not prevent government regulators or other plaintiffs from bringing other lawsuits against Facebook over user privacy issues – either currently or in the future.
In July 2022, Facebook agreed to pay $725 million and boost privacy protections in a settlement with the Federal Trade Commission and states related to alleged violations of a 2012 consent order. Other investigations may still follow.
Facebook and other tech giants continue to face scrutiny over how they handle user data and protect privacy. Only time will tell whether other large legal cases or settlements arise in the coming years. But Facebook now puts this long-running lawsuit to rest.
Conclusion
The Facebook class action settlement provides a potential payout to millions of users whose data was tracked without their explicit consent based on the lawsuit’s allegations. How much each person receives from the $90 million fund depends on the number of valid claims filed.
Settlement class members should watch for instructions on how to submit their claim online once the process opens. Payouts likely won’t get mailed out until 2024. Though the payment amount may be small, participating in the settlement could provide some compensation for the alleged privacy violations many years ago.