Facebook Class Action Settlement Approved.

Facebook launched a program called “Beacon” which updated a member’s profile to reflect actions the member took on websites belonging to companies contracting with Facebook. Thus, for example, if a member rented a movie through the participating website Blockbuster.com, Blockbuster would transmit information about the rental to Facebook, and Facebook would broadcast that information to everyone in the member’s online network. Many members complained about dissemination of private information. A class action was filed and settled. The district court approved a $9.5 million settlement; $3 million was for attorney fees and costs and the remaining $6.5 million was to set up a charity called Digital Trust Foundation, DTF, to fund and sponsor programs designed to educate users and others relating to the protection of personal information from online threats. The Ninth Circuit affirmed, holding the district court properly limited its review of the settlement agreement to whether it was fair, adequate and free from collusion. Lane v. Facebook  (Ninth Cir.; September 20, 2012) (Case No’s: 10-16380, 10-16398) 696 F.3d 811.