Problems For Monetization: Lawsuit Forces Facebook To Let You Opt Out Of Sponsored Story Ads

Facebook's business model just hit a stumbling block, as the social network is being forced to let users opt out of having their likenesses repurposed as endorsements in Sponsored Stories ads. The requirement of opt out controls comes as part of a settlement of a class action lawsuit where five Californians said they did not consent to having their names, faces, and activity used to promote companies who paid Facebook. It could have been even worse, as it appears that these controls will work on an story-by-story basis, and won't allow users to opt out of all future Sponsored Stories.

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