Subscribe RSS
Comment RSSFacebook Sued for $15B
Written by Pace LattinMay 18, 2012 # 10:17 am # Industry News, Specials # 38 Comments
As their IPO launches, it seems that Facebook is being sued for $15 Billion for improper user tracking. Basically, the suit claims that Facebook invaded privacy by tracking users, whether they were logged into Facebook or not.
The suit, filed in the Federal Court in California, combined 21 total cases from around the Country. This figure in the suit is based on US Wiretap Act, and says that based on this law, it “provides statutory damages of the greater of $100 per violation per day, up to $10,000, per Facebook user.”
According to Bloomberg:
Facebook, which sold stock in an initial public offering valuing the company at about $104 billion, has been scrutinized by regulators in the U.S. and Europe over how it protects users’ private data. Last year, a German data-protection agency said it may fine the company over facial-recognition software used for tagging photos.
Written by Pace Lattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.
There are thirty-eight comments. Join the discussion.
Share/Bookmark this!
Can anyone just earn their own money instead of trying to sue to get rich anymore?
As an attorney who makes his own money helping others sue, I say to you…i sure hope this country never becomes a place where people all start working to earn money…..
So does it mean that FB users get a piece of a pie?
Seriously, why would it be fair if they sued on people’s behalf and then the people don’t get it. makes no sense. like pointing out someone has gold in their backyard and then being like “i brought the shovel, i get it all!”
Why wait for the IPO before instituting this case against Facebook? Facebook really has several areas where they are not doing well at the moment. I think they should be given the benefit of the doubt; allow new board to come in place and if the problems linger after that then they can be sued.
Doing that at this crucial moment would spell a doom for the company.
Efoghor Joseph Ezie recently posted..Top Tips for Creating a Social Media Rule Book
Facebook is growing wide… i wonder
Donatus recently posted..WAPTRICK.COM: A WEBSITE TO DOWNLOAD GAMES, APPLICATIONS, MUSICS AND VIDEO
To me, this is the biggest reason why I would never invest in Facebook. Their value is tied up in their ability to harness private information from its users, and also to provide so much value to those users, that they don’t mind giving up their privacy. I don’t think they are sustainable unless they make major changes!
Khaleef recently posted..My Hundred Dollar Carnival Experience
Jeez! Not another lawsuit again!
$15 Billion??? It’s ridicuolus!
Can you spell Speculative attack?
Lawsuits are built into the business models of Big Corporation. It is how they can get away with doing illegal things. A citizen or even a small business owner would be jailed over something like this. These lawsuits are small potatoes compared to the profits they make by breaking laws.
I agree… people who rely on FB do not realize that they are not community but commodities !
Makes sense that this story would arise after FB’s IPO. There’s been story’s all over that even investors are not too sure about short selling the stock,wanting to keep it longer because of its predicted value. Stock is always unpredictable.
I think if they win the lawsuit, they might try to use the money to buy FB stocks.
Byrl Lane recently posted..Fire Hydrant Car Injury Hospitalizes Peoria Woman
It’s your money !… but my speculation of stock from a year from now..Just $ 3 .. and you will keep on holding till company goes bankrupt and disappear in next 3-5 years !Good luck to your daydreams!!
Like it ? I Love it!
Does this mean that facebook users could get up to $10,000 each? That is definitely the implication. If so, how would we claim it?
It is stunning how this lawsuit popped up right the same day when FB made stock trading inauguration. Think the investors are not enchanted with this news.
Daniel recently posted..Near-Earth 2012 DA14 Asteroid Could Crash Into Satellites (COMSAT)
15 billion really isn’t even a big deal to facebook anymore. They are going to keep doing what they are doing, but I do believe at some point that it will be the downfall of them. Google plus here we come!
Leland recently posted..My 1800 Calorie Diet
Are you kidding me? Google + is HORRIBLE for privacy invasion. I say close your laptop and everyone go meet in the park like you used to.
I bet FB don’t end up paying anything near the 15Billion, Something in my head tells me IF they pay anything it will be a much lower sum of money.
I think you might be correct
pacelattin recently posted..75% Don’t Click on Facebook Ads
At least, let Facebook rest for a little and you guys go look for a clean way to make your own money rather than sue rich companies!
Ayodeji recently posted..Severin, Facebook Co-Founder, Gives Up U.S Citizenship
I like to see this happen. Of course it won’t hurt my rival but I can look at it as payback.
I like to see this happen. Of course it won’t hurt my rival but I can look at it as payback.
This news is not too surprising for Facebook Users
Due to the success of IPO companies make a lot of Jealousy
I’m sure if Facebook wins in court Another problem is suing Facebook.
Bravo Facebook
Free Radio FM recently posted..Free Radio Fm Radio Streaming
Interesting timing on this. People will NEVER stop seeking damages from frivolous lawsuits…on the otherhand, how do I get compensated
Facebook demolished privacy for just about every person on this planet.
think
منتديات بنات كول recently posted..:$
I do not agree with suing FB, but I do agree that I do not see their stock staying where it was today. They have no tangible goods, and all it takes is a new site to come and get everyone’s interest and they will go the same direction as myspace.
Ryan recently posted..N-Touch Marketing Intro To SEO
Far out yet another lawsuit…
Mark has created one of the best “If not” the best website on the internet he shouldn’t continue to have lawsuits against him…
Billee
Billee Brady recently posted..3 Tips For Staying Focused In Your Home Based Business
“Mark”? Oh, I get it. You’re on a first-name basis. Mmm hmm.
I would love to see this lawsuit happen. Facebook and its ilk have been progressively destroying civilization through narcissism. People now seem to think that everyone else wants to know when they’re sitting on the toilet, and the color and texture of their s**t.
Get off the Facebook machine and go talk to someone face-to-face for a change. Billee, maybe you should meet up with “Mark” for lunch on Monday. Let us know how the conversation goes.
Really? the timing is impeccable..
“The greatest thing about the internet, is that you can quote something and totally make up the source.” – Abraham Lincoln (hope I haven’t been tagged)
I just need to have more informations,but is clear that each giant : Facebook,Google or Twitter use the data in their own commercial purposes.
Leads with Facebook in 24h recently posted..Site Finder Pro – Own The Ultimate Flippa Research Tool – Open Now
I do not really see a good future to FB if they do not make efforts to get out of the box. they should focus on something else besides their social website and all kind of adverts.
Foxcrawl recently posted..Elena Udrea and Catalin Morosanu engaged in K1 combat at Realitatea TV
facebook can buy your mouth.
Good for Facebook that most people do know know that Facebook web-crawlers follow us around on every web-page we visit to analyze and build our extended profiles, interest-graph, and whatever else technology permits from reading everything you read. On any page with active Share/Like buttons. Others, like LinkedIn are following right behind. Both Facebook and LinkedIn load up EVERY page you do. For whatever the latest text analysis allows them to gleane.
I am personally not really comfortable with any company saving away a database of EVERYTHING I might have been interested in over time. Profiles of preferences, political leanings, product preferences (including private info), and what else can be gleaned from analyzing someone’s web-history.
Facebook’s business model depends on what they know. Other than profit share in “virtual products” (pigs in Farmville) and games, this is all they have. The more info gathered, the more revenue for shareholders.
See http://riskyinternet.com/part-1-social-networks-tracking-your-internet-slime-trail/
Good experiment: Look at your web-history and guess how OTHERS might interpret it, if they got their hands on it and could magically analyze it like Facebook/LinkedIn and others can. Or how its information could be used, if someone without your best at heart got to interpret it.
DeeCee recently posted..Part 4 – Your web slime trail – impacts to you and to site-owners
I think its too much sued.
Well,facebook then get its being famous with so many rivals that trying to make them down.
Sure it wont be long before this gets swept under the rug LOL
Chris recently posted..Beachbody Ultimate Reset | 21 Day Detox Results/Review
I’m sure the government is using the same data or techniques already!Nothing seems to be off limits online…