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Facebook Axes "Beacon," Donates $9.5M To Settle Suit

alphadogg sends in a Network World piece that begins "Facebook has agreed to shut down a program that sparked a lawsuit alleging privacy violations, and set up a $9.5M fund for a nonprofit foundation that will support online privacy, safety, and security. The lawsuit centers around Facebook's Beacon program, which let third-party Web sites distribute 'stories' about users to Facebook. Beacon was launched in November 2007 and less than a year later plaintiffs filed a class action lawsuit 'alleging that Facebook and its affiliates did not give users adequate notice and choice about Beacon and the collection and use of users' personal information.' ... Facebook never admitted wrongdoing but as part of a proposed settlement the company began sending notices to Facebook users this week. The settlement provides no compensation directly to users who receive the notice. Facebook users can opt out of the settlement, and should do so if they wish to pursue further legal action against Facebook related to the Beacon program. 'If you choose to do nothing and remain in the settlement class, you will be legally bound by the settlement,' a FAQ on the settlement Web site says. "By doing nothing, you will be giving up the right to sue Facebook and the other Defendants over claims related to or arising out of the Beacon program.'" Other defendents included Blockbuster, Fandango, Overstock.com, Zappos.com, and Gamefly. Neither the article nor the settlement site mentions what part, if any, they play in the settlement.

28 of 71 comments (clear)

  1. Silly by dontPanik · · Score: 4, Insightful

    It would be totally silly if someone was to sue Facebook over this.
    Yeah, they do have fault in that they didn't design Beacon better so that 3rd parties wouldn't be able to trick users, but I just feel like people want a reason to sue, sue, sue.
    I mean, it has been around for two years, and if a 3rd party site uses it, I believe that you'll notice, because it will show up in Facebook.

    And truthfully? I loved this feature. I would order out to restaurants and at the end it would be like "do you want to share this over Facebook" and I'd be like "Shit why not!" and I'd get a laugh out of my friends criticizing or commending me on my food choice.

    --
    "Computers are useless. They can only give you answers." - Pablo Picasso
    1. Re:Silly by Darkness404 · · Score: 3, Interesting

      It depends on your feelings of privacy. Myself I tend to give out a decent amount of information to my Facebook friends because the vast majority of them either A) are trusted friends or B) random strangers who I might never meet in my life. However, beacon is a bad thing for a lot of people who might need privacy or who have Facebook-stalking loved ones who may jump to conclusions. Think about it this way, you are on a business trip and decide to order at an upscale restaurant for just you because you like the food, yet your Facebook-stalking wife/girlfriend sees a beacon post about your reservation and thinks that you -clearly- are seeing someone other than her and no one would ever eat at an upscale restaurant just by themselves and clearly your business trip you are on is simply a front for you to cheat on her. And yes, stuff like this does happen. If you are lucky enough like some people (like you and me) not to have friends who don't trust you, but some people are unlucky enough to have situations like this.

      --
      Taxation is legalized theft, no more, no less.
    2. Re:Silly by nacturation · · Score: 2, Insightful

      And truthfully? I loved this feature. I would order out to restaurants and at the end it would be like "do you want to share this over Facebook" and I'd be like "Shit why not!" and I'd get a laugh out of my friends criticizing or commending me on my food choice.

      Yeah, that's cool. But what about the person who rented the DVD AIDS and HIV Answers from Blockbuster and had that rental show up on their Facebook profile without their knowledge or permission?

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    3. Re:Silly by chimpo13 · · Score: 2, Informative

      When it started, you didn't approve anything. And I hadn't heard of beacon or what it was. It outed me on yelp reviews that I had under a different name with a different email. Mildly embarrassing since I gave a friend's restaurant an honest (read bad) review. I figured it was under a different email so I was safe. Not at all.

    4. Re:Silly by L33tminion · · Score: 2, Interesting

      the two accounts were not linked in any way [email address, openID, et cetera] except for having the same name on record.

      Having the same name on record had nothing to do with it. Yelp was forwarding the information to a page on Facebook, which used the cookies stored in your browser to see which account was logged in (same as how when you log in to Facebook, go elsewhere online, and then return, it knows which account is logged in and doesn't ask you to log in again).

      That aside, you've got it right. The problem with Beacon (in it's original implementation) was that it did unexpected stuff without the user's consent.

  2. I don't use these services... by PyroMosh · · Score: 3, Insightful

    I don't use myspace, facebook, etc. but perhaps someone can enlighten me. Why do people who publish info in the internet about themselves somehow feel entitled to some sense of privacy in doing so? It's counter-intuitive on it's face, at best.

    The fact that it's Facebook that was providing hooks through an API to push info out to third parties is just a matter of efficiency. If the data's there, either you have it walled off for your eyes only, (in which case, why "publish" at all?) or it's open through some method to third parties anyway.

    Why would one go publishing info about themselves that they didn't want out there?

    This strikes me as panic for panic's sake. What am I missing?

    1. Re:I don't use these services... by Anonymous Coward · · Score: 3, Insightful

      Some info people choose to publish. Other info people didn't choose to publish but it was published for them, hence the problem. I use Facebook and have some info on it, but just because I visited a website I always visit doesn't mean I want my actions on that website shared with everyone who can see my profile.

    2. Re:I don't use these services... by Darkness404 · · Score: 2, Insightful

      Because of the separation between online and reality. For example, your Facebook is more in the reality section, you generally only accept people you know, can keep a tight control on your profile, etc. On the other hand, you have your online profiles, things such as perhaps your /. account, various online games, forums, etc. And most of the time without technical interference they stay separate. I have little doubt that someone could identify me between accounts by looking at my word choice, writing styles, opinions and such on /. but no one has any motivation to do that. In addition, there are hundreds of thousands of /. users, millions of other Facebooks, millions of MySpaces, million of blogs, etc. the odds that someone could wade through all of those without the accounts giving away the e-mail address or the accounts having similar usernames is very slim unless someone has -lots- of time on their hands. Plus, "publish" may only require one or two clicks, someone with very short access to a computer with Facebook logged in could seriously damage someone's reputation by publishing a few links that are using Facebook's API.

      --
      Taxation is legalized theft, no more, no less.
    3. Re:I don't use these services... by nacturation · · Score: 3, Informative

      Why would one go publishing info about themselves that they didn't want out there?

      Beacon was opt-out only. If you were logged in to Facebook at the same time you visited a third party site, that third party site could publish a story 'PyroMosh purchased the Deluxe 12" Ass-Ramming Dildo from Anal Enterprises' without having to ask your permission. Oh sure, you could opt-out after the fact, but only for each individual third party once they had published to your profile.

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    4. Re:I don't use these services... by mdwh2 · · Score: 2, Interesting

      So you think ordering something from a website - perhaps using a secure page - now counts as "publish info in the internet about themselves" and it's therefore fair game for them to broadcast that to all and sundry without your consent?

    5. Re:I don't use these services... by PyroMosh · · Score: 2, Interesting

      'PyroMosh purchased the Deluxe 12" Ass-Ramming Dildo from Anal Enterprises'

      Have you been reading my facebook? I have to remember to set that to private.

      Seriously, though I gravely misunderstood what this beacon was. I thought it was just some API hooks that would let advertisers run queries against facebook posts presumably to deliver targeted ads or some other such nonsense. I had no idea it was what it was.

      That said, from what I understand, it uses a cookie to identify one's ID. Since the cookie only contains user ID data, and logging in is not necessary, would it not have been possible (even trivial) to forge activity history for any arbitrary facebook user? As long as you know their ID, you can have them purchase the 'Deluxe 12" Ass-Ramming Dildo from Anal Enterprises' as many times as you please.

      Too bad this beacon thing isn't around any more.

    6. Re:I don't use these services... by Eskarel · · Score: 4, Insightful

      The thing is that there's a middle area between publishing nothing about yourself and publishing everything about yourself. Beacon sort of pushed a little too close to everything for some people. I use facebook to keep in touch with my friends overseas, it's useful for that purpose, and I will message them or write on their walls or whatever I deem appropriate whatever information I want to share with them. The key here is "I WANT". There are things I'm happy to publish, there are things I don't want to publish. I'm happy to announce to my friends(and pretty much everyone on my facebook is actually a real friend because I don't give a crap about friend counts IRL or on facebook) some of the events in my life I want to share with them. I don't really need them to know exactly what I bought from that on-line retailer or what I've just done in a video game. Aside from it being none of their business, I don't care what other people are doing and so I don't believe they should care what I'm doing.

      Just because some idiots share every second of their lives on facebook, or myspace or twitter or their blog or whatever doesn't mean that everyone who uses those services does.

    7. Re:I don't use these services... by hopkid · · Score: 2, Insightful

      I presume that many slashotters use facebook & are pro privacy. They see ./ as a forum to express their views and impact the social viewpoint to their favor. This is good, even though it leads to many argumentative discussions that devolve into semantic arguments. This is a form of social consciousness.

      Personally, the only thing that I can say is that sometimes I value my privacy more than my social connectivity. During these times, I tend to add content to my facebook page. At other times, I remove content from said page because of privacy concerns. And I share these concerns with my friends through discussions and debates. I do this because I have mutable convictions, as I'm constantly learning (and forgetting) things. Overall, I think facebook is useful, despite its privacy drawbacks. (I feel this way too about using gas power, despite its environmental drawbacks, even though I feel the urge to talk about its negative impacts.)

      And I guess the reason I don't mind my engaging in both sides of the coin is that in the long term, I feel my engagement allows me to bring about positive changes unattainable to those shun engagement (even though they can contribute in other ways).

  3. Beacon by mugnyte · · Score: 2, Informative

    "Beacon" let a site send your personal information and activity to Facebook, so that they could post it to your friends.

    So review a movie at blockbuster, then see it offered on your fb page as a post ready to publish.

    Exchanging information in this way may or may not be legal where the user lives, but it's certainly not open and explicit.

    I'm not sure how many people this will quiet, since nobody is revealing what actual info was shared (contact info? payment info?) and what was done with it (sold?).

  4. Notification seemed like phishing by trentblase · · Score: 2, Interesting

    Did the settlement notification email set off anyone else's "phishing spider sense"? The email was sent from "root+5_-hkmdi@facebookmail.com" -- why not send it from facebook.com?

    1. Re:Notification seemed like phishing by trentblase · · Score: 2, Insightful

      My point is that an email purportedly from Foo, that never once contains the string foo.com in body or headers, sets off my phishing alarm. While this particular email was legitimate, I think it is poor practice for Facebook to send official mail from facebookmail.com, when facebook.com, mail.facebook.com, official.facebook.com, etc. are more intuitive and save me the trouble of a whois lookup. I have this problem with Citibank as well, which tries to direct me to accountonline.com to check my credit card statement.

  5. YOU ALL OWE ME $1000 by Mr.+Freeman · · Score: 4, Funny

    If you read this post, you owe me me $1000. By doing nothing you agree to pay this money, in full, within 1 (one) business week. You must opt out of this by filling out a ream of paperwork which I will not provide you if you wish to avoid paying this money. If I do not receive this money in a timely manner, further legal action will be taken.

    Sincerely,
    Mr. Freeman.

    --
    -1 disagree is not a modifier for a reason. -1 troll, flaimbait, redundant, overrated are NOT acceptable substitutes.
    1. Re:YOU ALL OWE ME $1000 by Lavene · · Score: 2, Funny

      If you read this post, you owe me me $1000. By doing nothing you agree to pay this money, in full, within 1 (one) business week. You must opt out of this by filling out a ream of paperwork which I will not provide you if you wish to avoid paying this money. If I do not receive this money in a timely manner, further legal action will be taken. Sincerely, Mr. Freeman.

      I don't want any trouble so I will comply with uttermost urgency. Please post Your name, address, date of birth, SSN, bank and credit card information. This is for identification only so we can verify You as the lawful Recipient of these founds.

      Your Humble Servant Mr Ali Issa.The Director Bank of Africa (BOA) in Ouagadougou,Burkina Faso .

  6. If I knew there was settlement money involved, by TxRv · · Score: 2, Interesting

    maybe I wouldn't have opted out as soon as I figured out what Beacon was ;-P

    1. Re:If I knew there was settlement money involved, by Trepidity · · Score: 3, Informative

      It doesn't look like there's any settlement money for normal Facebook users.

      The settlement provides that the $9.5 million will be spent on:

      • (i) setting up a non-profit Privacy Foundation
      • (ii) paying settlement-administration costs
      • (iii) paying plaintiffs' attorneys fees and expenses, plus approximately $2,000 to each of the 19 Representative Plaintiffs who initiated the suit
  7. That was fast by neoform · · Score: 2, Insightful

    Sounded like a bad an intrusive idea when it was launched.. glad FB only took 2 years to figure that out.. It took MS a lot longer than that to axe their passport crap.

    --
    MABASPLOOM!
  8. Re:Legal? by Trepidity · · Score: 2, Informative

    That's the entire theory of class-action lawsuits. Normal lawsuits are opt-in: the plaintiffs' attorneys can only claim to represent any plaintiffs that have explicitly retained them as representation in the case. Other plaintiffs therefore retain the right to sue separately, but unless they actually do so, they are not represented in the lawsuit. In class-action lawsuits, plaintiffs' attorneys can ask to have a class certified, and they will be taken to represent all members of the class, except insofar as members of the class opt out.

    In theory at least, this has some pros for both sides (in addition to cons, of course). For consumers, the pro is that harm that would not be worth suing for individually will still be remedied, because it's worth suing for in aggregate: so a hypothetical evil corporation that did something illegal to cause $10 of damage to every person in the United States won't get away with it. For companies, the pro is that settling a class-action lawsuit settles it for all members of the class simultaneously, except those who explicitly opt out, so they can get the complaint over with once and for all.

  9. Parent is not a "Troll" by NoYob · · Score: 2, Informative
    Another post wrongfully modded "Troll".

    Some of you with mod points really need to read the moderation guidelines.

    Here's a bullet point guide:

    Troll: someone who's posting stuff just to get a reaction out of folks.

    Flamebait: just posting shit to piss everyone off or a select group. An example, I think Slashdot has a script that looks for really stupid people and then gives them mod points. See, that's "Flamebait".

    Now off-topic would be if I posted something about Nazi Germany and their battle tanks.

    Overrated will be if I got a +5 Funny for posting, "Imagine a Beowulf cluster of Facebooks" or "In Soviet Russia, Facebooks you!"

    See?

    Now, you Troll moderators be nice and post something to back off the parent's bogus moderation.

    --
    It's NOT me! It's the meds! I'm on 1000mg of Fukitol.
  10. I got this email and it's quite terse. by tonycheese · · Score: 4, Informative

    I honestly, honestly thought it was spam. In fact, I had just marked it as spam before I came over here and read about it.

    Facebook is sending you this notice of a proposed class action settlement that may affect your legal rights as a Facebook member who may have used the Beacon program. This summary notice is being sent to you by Court Order so that you may understand your rights and remedies before the Court considers final approval of the proposed settlement on February 26, 2010.

    This is not an advertisement or attorney solicitation.

    This is not a settlement in which class members file claims to receive compensation. Under the proposed settlement, Facebook will terminate the Beacon program. In addition, Facebook will provide $9.5 million to establish an independent non-profit foundation that will identify and fund projects and initiatives that promote the cause of online privacy, safety, and security.

    For full details on the settlement and further instructions on what to do to opt out of, object to, or otherwise comment upon the proposed settlement, please go to http://www.beaconclasssettlement.com./

    Please do not reply to this email.

    That was the entirety of the email. No signature, no hello, that was it.

  11. I'd have been much more impressed... by trawg · · Score: 5, Insightful

    ..if they'd just given that $9.5 million to the EFF.

  12. 3 million+ to the lawyers by SashaMan · · Score: 2, Insightful

    If you read the settlement carefully, it says that 1/3 of the settlement goes to the lawyers. Our legal system is such a fucking scam.

    Over the past decade I've been a member of the class in about 10 class action lawsuits. The majority of the time I don't even bother to collect - filling out the paperwork isn't worth it to get a 5 dollar coupon. I guess I've sure made a lot of lawyers rich, though.

    1. Re:3 million+ to the lawyers by hopkid · · Score: 2, Interesting

      I was once amused to discover that I had been entitled to a few dollars for seeing a sony movie that was falsely advertised, as well as for buying a dvd that wasn't cropped properly. I too didn't collect on my bounty.

      To me, the purpose of such settlements isn't necessarily to benefit me, the wronged consumer, for past transgressions by the offender. It is to prevent offensive behavior in the future, which will benefit me in the future, as I won't be subject to such offenses then.

      This does seem weird, though, as the stakes are somewhat different for individuals/people, who face jail time for such offenses. If Madoff can pay off his debts, shouldn't we let him continue as a stockbroker, as long as he ensures that he will act within the confines of the law?

  13. How to opt out of the settlement by mantis2009 · · Score: 4, Informative
    To opt out of the settlement:

    10. What If You Want To Exclude yourself (Opt Out) From The Settlement? If you do not want to be legally bound by the settlement, you must exclude yourself by February 1, 2010, or you will not be able to sue, or continue to sue, the Defendants and certain other parties for the claims listed in the Settlement Agreement. To opt out, you must mail (email is not permitted) your original, signed exclusion request to: Facebook Settlement Administrator Exclusion Requests P.O. Box 6177 Novato, CA 94948-6177 Your request for exclusion must contain your name and address, be signed by you, and include the reference “Lane et al. v. Facebook, Inc. et al., Civil Action 5:08-CV-03845-RS.” Your original, signed request for exclusion must be RECEIVED on or before February 1, 2010.