BC Supreme Court Approves $51 Million Settlement for Facebook Users in Class-Action Lawsuit
In a major development for Facebook users in Canada, the British Columbia Supreme Court has approved a $51 million class-action settlement between Facebook’s parent company Meta and 4.3 million users across four provinces. The settlement comes as compensation for the unauthorized use of users’ images in Facebook’s sponsored stories feature. This marks a significant win for the affected individuals, as they are now one step closer to receiving their payouts from the social media giant.
The settlement was reached in November between Meta and lawyers representing the class plaintiff, Deborah Douez, a resident of British Columbia. It’s important to note that the settlement does not require Meta to admit any liability or wrongdoing. Instead, it allows the company to resolve the claims without accepting fault. The approval of this settlement by Justice Nitya Iyer paves the way for eligible residents of British Columbia, Saskatchewan, Manitoba, and Newfoundland and Labrador to receive compensation for their involvement in sponsored stories between January 1, 2011, and May 30, 2014.
Under the terms of the settlement, affected Facebook users can expect to receive between $20 and $55, with a maximum payout of $200. Christopher Rhone, a lawyer from the Vancouver law firm Branch McMaster, explained that the final payment will depend on the number of people who sign up for a payout. Typically, take-up rates for class-action lawsuits aren’t high, so it remains to be seen how many individuals will participate in this settlement.
To join the class action and be eligible for compensation, Facebook users must have used their real names and had a profile picture that included an identifiable self-image. Furthermore, their image must have been used by Facebook in a sponsored story during the specified time frame. As it is impossible to determine when each individual user was featured in a sponsored story, it is assumed that any user from the four eligible provinces was likely included in at least one sponsored story and will be entitled to payment.
The origins of this case date back more than a decade when Deborah Douez discovered that her Facebook photo had been used alongside an endorsement for an obstacle course race company without her consent. At the time, there was no option to opt out of Facebook’s sponsored stories ads. This led to a lawsuit that first went before the B.C. Supreme Court in 2014. The current class action stems from Ms. Douez’s 2017 lawsuit, which challenged Facebook’s policy of using a user’s name and photo in ads based on a “Like” on the platform.
Interestingly, this settlement approval coincides with another significant settlement involving a tech giant. A B.C. judge also recently approved a multimillion-dollar settlement with Apple over allegations that software updates intentionally slowed down older iPhones. In this case, eligible residents of Canada, excluding Quebec, are expected to receive compensation ranging from $17.50 to $150, depending on the number of claims submitted.
Overall, the approval of the $51 million settlement between Meta and Facebook users is a significant step toward justice for those affected by the unauthorized use of their images. It showcases the power of class-action lawsuits in holding large corporations accountable for their actions. As class members wait for the sign-up forms to become available, it remains to be seen how many individuals will come forward to claim their compensation. Regardless, this settlement marks a victory for privacy rights and serves as a reminder to tech companies that users’ consent should always be respected.
