Facebook has gotten into some hot water over its 'Sponsored Stories' feature, which can take a users' "likes" and turn them into paid advertisements for brand pages.
Five Facebook users in California have successfully sued the company for using their name and likeness in the ads without providing compensation or an opportunity to opt out.
As a settlement, Facebook will pay $10 million to an undisclosed charity.
Facebook, which is under increasing pressure to monetize more effectively since going public last month, has touted Sponsored Stories as a great opportunity for advertisers in the past. It's not yet clear how the company will retool the program in the face of the lawsuit.
[via Reuters]
