Facebook users are set to receive payouts as part of a $725 million settlement linked to the Facebook User Privacy Settlement. This large-scale distribution will occur over the next several weeks through various platforms such as checks, PayPal, Venmo, or Zelle. Users who filed legitimate claims in 2023 will be notified via email by the settlement administrator, indicating the payment process.
This settlement stems from lawsuits that alleged Facebook improperly shared users’ information with third-party entities, such as advertisers and data brokers. The controversy intensified following the infamous Cambridge Analytica scandal, where the firm’s data tactics were called into question, especially during the 2016 U.S. presidential election. Although Meta, Facebook’s parent company, denied any wrongful conduct, it agreed to settle the case to avoid a trial.
Facebook users who are eligible for the payment can anticipate an average payout of $30, with some potentially receiving up to $38.36. The amounts hinge on the duration of an active Facebook account between May 2007 and December 2022. Emails confirming the settlement payment will originate from the “Facebook User Privacy Settlement Administrator,” with specific precautions flagged against possible scams.
Eligibility for settlement payments included U.S.-based Facebook users who were active during the designated period and had filed a claim by the August 25, 2023 deadline. Payment began in early September, with a process spread over ten weeks. Upon filing claims, users specified their preferred method of receiving payments.
The $725 million settlement allocates funds for eligible Facebook users’ payouts, plaintiffs, legal counsel, and associated costs, with eight plaintiffs already receiving $120,000 each. The outcome of this settlement underscores the importance of privacy and user data management, marking a significant moment in social media regulation. As the payments roll out, it also serves as a reminder of the ongoing scrutiny and accountability that large tech companies face concerning user privacy rights.