Facebook recently reached a preliminary $37.5 million settlement in a lawsuit alleging it violated users’ privacy by tracking their internet use after logging off the social media platform. The lawsuit stems from claims that Facebook installed cookies on users’ browsers that tracked their visits to non-Facebook websites containing Facebook “like” buttons and other plugins. This allegedly allowed the company to compile detailed profiles on users even when they weren’t actively using the Facebook platform.
What were the allegations against Facebook?
The lawsuit alleged that Facebook violated federal and state privacy and wiretapping laws by tracking users’ internet activity even after they had logged off of Facebook. Specifically, the plaintiffs claimed that Facebook was able to track users’ visits to third-party websites that contained Facebook plugins such as the “like” button through cookies installed on users’ browsers. This enabled Facebook to create detailed profiles of users’ interests to better target ads, the lawsuit alleged.
Plaintiffs claimed that by tracking users’ internet browsing in this manner, Facebook violated the Federal Wiretap Act, the Stored Electronic Communications Act, and breached users’ privacy rights under California law. They accused Facebook of illegally intercepting communications without consent to collect user data and profit from highly targeted advertising.
When was the lawsuit filed?
The lawsuit was originally filed in U.S. District Court for the Northern District of California in 2015. It was consolidated with other related complaints against Facebook in 2016 to form a class action lawsuit encompassing all affected Facebook users.
Who were the plaintiffs?
The original lawsuit was filed by a Facebook user in California and another in Rhode Island who alleged their privacy rights had been violated. But in 2016, it was consolidated with similar cases and granted class action status to include any U.S. Facebook users affected by the alleged tracking practices.
What did Facebook say in response?
Facebook denied any wrongdoing and fought the lawsuit for years. The company argued that users consented to the tracking and data collection practices when they agreed to Facebook’s terms of service. Facebook claimed it made adequate disclosures about its use of cookies and web browsing data to target advertisements.
The social media giant made the case that it did not illegally intercept or eavesdrop on users’ communications, but simply made use of data freely transmitted to it through internet cookies. Facebook contended there was no expectation of privacy since users were willingly accessing websites on the open internet that contained Facebook tools.
Why did Facebook agree to settle?
Despite its vigorous defense in court, Facebook ultimately agreed to settle the class action last year before trial. Legal experts speculate that Facebook wanted to avoid the risk of an adverse verdict that could have cost it billions of dollars. The settlement allowed Facebook to resolve the case without admitting wrongdoing.
Settling also avoids the negative publicity of a trial that would have brought Facebook’s data collection practices under intense public scrutiny. The $37.5 million payout is relatively small for a company of Facebook’s size, so the settlement may have been chiefly motivated by a desire to curtail damaging PR.
How much will individual class members receive?
The $37.5 million settlement fund will be distributed among an estimated 189 million Facebook users in the U.S. who used the platform between April 2010 and September 2011. That works out to roughly $0.20 per class member before fees and expenses.
However, claimants who submit valid claims will receive a higher payment than that minimum amount. Attorneys in the case estimate individual payments could be in the range of $200 to $400, depending on how many class members file claims.
Settlement Fund Distribution
| Settlement Fund | $37,500,000 |
| Estimated Class Members | 189 million |
| Minimum Payment per Class Member | $0.20 |
| Expected Individual Payment Range | $200 – $400 |
How can class members file a claim?
To receive a cash payment from the settlement, affected Facebook users must submit a valid claim form by the deadline. The easiest way to file is to submit an online claim at the settlement website. Claims can also be filed by mail.
Claimants will need to provide basic information such as their name, email or phone number used for their Facebook account, current contact information, and affirm they were a Facebook user between April 2010 and September 2011 and residing in the U.S. at that time.
The deadline to file either an online or mail claim is September 22, 2023. Only class members who submit timely and valid claims will receive cash compensation.
How to File a Claim
- Online claim form: settlementwebsite.com
- Mail claim form to: Facebook Tracking Settlement, P.O. Box 0000, City ST 00000
- Claim filing deadline: September 22, 2023
What happens after claims are filed?
Once the claim filing deadline passes, the claims administrator will review all claims to validate their timeliness and accuracy. Invalid claims may be rejected. The administrator will then calculate each claimant’s pro rata share of the settlement fund after deducting court-approved fees and expenses.
Claimants whose claims were approved should expect to receive their payment in the form of a check or electronic deposit within 3-4 months after the claims deadline. Payments will be made only after the court grants final approval of the settlement.
Settlement Timeline
| Preliminary Approval | May 19, 2022 |
| Claim Filing Deadline | September 22, 2023 |
| Final Approval Hearing | November 20, 2023 (estimate) |
| Distribution of Payments | Early 2024 (estimate) |
What happens if too many class members file claims?
The $37.5 million settlement amount is fixed. In the event that more class members file valid claims than expected, the per-claimant payment amount could be reduced on a pro rata basis to cover all approved claims.
For example, if twice as many claimants than estimated file claims, the per-claimant recovery could be roughly half the estimated $200 – $400 range. The final payment amount will depend on the total value of approved claims.
Are there any other settlement benefits?
In addition to the monetary fund, the settlement requires Facebook to delete all stored web browsing histories of class members collected through cookies or plugins, unless users opt to keep that data. This will effectively reset class members’ browsing histories.
The settlement also mandates that Facebook post more explicit disclosures about its use of cookies and targeted advertising practices. These disclosures must be displayed to all users for at least 6 months.
Who are the lawyers representing class members?
The court appointed lawyers from two law firms to represent class members as lead counsel in the lawsuit:
- Keller Lenkner LLC
- Labaton Sucharow LLP
These firms have experience handling other privacy class actions including those against tech companies. They negotiated and advocated for the $37.5 million settlement on behalf of all affected Facebook users.
Class Counsel
| Keller Lenkner LLC |
| Labaton Sucharow LLP |
How much are the attorneys getting paid?
The two law firms serving as class counsel will seek court approval for an award of attorneys’ fees up to 20% of the $37.5 million settlement fund, or $7.5 million. They will also request reimbursement of litigation expenses incurred during the case. The fees and costs awarded to class counsel will be paid from the settlement amount before distributions to claimants.
Attorneys’ Fees and Costs
| Settlement Amount | $37,500,000 |
| Maximum Fee Request (20%) | $7,500,000 |
| Litigation Expenses | TBD |
What if class members don’t like the settlement?
Class members who disagree with the terms of the settlement have the right to object to final approval by the court. Objections must be filed in writing and mailed to the claims administrator by October 1, 2023.
Class members also have the option to exclude themselves from the settlement. Those who exclude themselves will not receive a payment but will retain the right to file their own lawsuit against Facebook. Exclusion requests must be submitted by September 8, 2023.
Instructions for objecting to or opting out of the settlement can be found on the case website or by calling the claims administrator.
Key Settlement Dates for Class Members
| Exclusion Deadline | September 8, 2023 |
| Objection Deadline | October 1, 2023 |
| Final Approval Hearing | November 20, 2023 |
When will the court decide whether to approve the settlement?
The court has scheduled a final approval hearing on November 20, 2023 to determine whether the settlement is fair, reasonable, and adequate. Any class member wishing to appear at the hearing must file a Notice of Intention to Appear with the court by October 1, 2023.
Both Facebook and the class counsel will ask the court to approve the settlement and requested attorneys’ fees. If approved, the court will issue a final order dismissing the lawsuit and requiring Facebook to distribute the settlement funds.
Where can I get more information about the settlement?
Complete details about the settlement including court documents are available at the settlement website [settlementwebsite.com]. Class members can also call the claims administrator at [toll free number] or write to [claims admin address].
Conclusion
The $37.5 million Facebook data tracking settlement provides a way for users to receive a cash payment in compensation for alleged privacy violations. Affected Facebook members who timely submit valid claim forms could get around $200 to $400 each, depending on the total claims filed. The settlement also requires Facebook to better disclose its data collection practices and allows class members to reset their browsing histories.