(Image source: Flickr Creative Commons )

BY STACEY WELSH

ANCHOR CHRISTINA HARTMAN

Facebook has agreed to pay $10 million to charity in a class-action lawsuit over its sponsored stories ads. WTVJ explains those are ...

“...generated after a Facebook user clicks the ‘Like’ button. An ad would then appear on the friend’s page asserting that the Facebook user likes the advertiser.”

WTVJ also reports users were upset Facebook used their image and the fact that they ‘Liked’ a product or business as a promotional tool without paying them or giving them a way to opt out. Five people brought the case to a federal California court. iTechPost reports :

“CEO Mark Zuckerberg was quoted in the lawsuit as saying that the "Holy Grail" of advertising lies in trusted referrals, such as those assertions that one of your friends likes the certain brand being advertised.”

CNET UK questions whether Facebook should be able to do what it wants with the information users provide, but reports the judge’s ruling:

“California has long recognized a right to protect one's name and likeness against appropriation by others for their advantage.”

VentureBeat reports the settlement was reached in May but the dollar amount and court records made public this weekend. $10 million won’t hurt Facebook’s coffers too much, and Venturebeat reports, the company probably isn’t too bent out of shape after deal because it could have been worse.

“...this could have become a class action lawsuit involving a third of the population of the United States as plaintiffs, $10 million seems a fairly small price to pay.”

Media outlets have not reported which charity will receive the settlement, and there is no word on whether Facebook will make changes to sponsored stories ads.