Facebook Privacy Settlement Challenged: 9th Circuit Weighs in on $90M Deal

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The 9th Circuit Court of Appeals has heard objections to a proposed $90 million settlement between Facebook and users who claimed the social media giant violated their privacy. The settlement, which was reached in 2020, aims to resolve a class-action lawsuit filed on behalf of Facebook users who alleged that the company's data collection practices were deceptive and in violation of federal law.
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The lawsuit, which was filed in 2012, claimed that Facebook's practice of tracking users' browsing history and other online activities, even when they were not logged into the site, was a violation of the Wiretap Act and the Computer Fraud and Abuse Act. The plaintiffs argued that Facebook's data collection practices were not clearly disclosed to users and that the company's terms of service were misleading.

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Objections to the Settlement

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Despite the significant settlement amount, some objectors have raised concerns that the deal does not provide adequate compensation to affected users. One of the objectors, a class member who opted out of the settlement, argued that the $90 million payout is insufficient, given the scope of Facebook's alleged wrongdoing. The objector claimed that the settlement amount works out to only about $1.50 per affected user, which is a small fraction of the potential damages that could have been awarded if the case had gone to trial.
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Other objectors have raised concerns about the settlement's release provisions, which would bar class members from pursuing future claims against Facebook related to the company's data collection practices. The objectors argue that this provision is overly broad and could prevent users from seeking compensation for future privacy violations.

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Facebook's Defense

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Facebook has defended the settlement, arguing that it provides a fair and reasonable resolution to the claims. The company's lawyers have pointed out that the settlement amount is one of the largest ever awarded in a privacy class action, and that the deal provides significant benefits to affected users, including changes to Facebook's data collection practices and enhanced transparency.

Facebook has also argued that the objectors' concerns about the settlement's release provisions are unfounded, as the provisions are standard in class action settlements and are intended to prevent duplicate litigation. The company's lawyers have also pointed out that class members who opt out of the settlement are free to pursue their own claims against Facebook, if they choose to do so.

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Implications of the Case

As the 9th Circuit weighs the objections to the Facebook settlement, it will be important to consider the competing interests of the parties involved. While the settlement provides a significant payout to affected users, it is also important to ensure that the deal is fair and reasonable, and that it does not unfairly limit the rights of class members to pursue future claims. Ultimately, the court's decision will have far-reaching implications for the tech industry and for consumers, and will help shape the future of data collection and privacy practices.

In conclusion, the 9th Circuit's consideration of the Facebook settlement objections is an important development in the ongoing debate over data collection and privacy practices in the tech industry. As the court weighs the competing interests of the parties involved, it will be important to consider the potential implications of the decision, and to ensure that the rights of consumers are protected. Keyword: Facebook, Privacy, Settlement, 9th Circuit.