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.
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