Facebook pays up after privacy lawsuit; users get $40

Over the past few days, thousands of people have checked their bank accounts or payment apps to find a surprise $40 deposit labeled Facebook settlement. And unlike the usual online scams, this payment is 100% legitimate.

The payouts stem from a class-action lawsuit Facebook agreed to settle in 2022, involving claims that the company improperly tracked user activity across other websites between April 22, 2010, and September 26, 2011 all through its now-ubiquitous Like button.

The privacy lawsuit behind the payment

The lawsuit accused Facebook of violating privacy laws by using the Like button which appeared on countless third-party sites to track users browsing habits even when they werent logged into Facebook. The class action alleged this surveillance was done without proper consent or transparency.

While Meta Platforms, Facebooks parent company, denied any wrongdoing, it ultimately chose to settle the lawsuit rather than face a lengthy court battle. As part of the agreement, Meta pledged to pay $90 million, a portion of which is now being distributed to eligible U.S. users.

Who got paid and why?

Eligible recipients are U.S.-based Facebook users who visited non-Facebook websites that featured the Like button during the timeframe in question. After deductions for legal fees and administrative costs, the remaining funds are being paid out to users who filed valid claims during the claims process.

Many recipients have taken to social media to verify their surprise payments, with most reporting deposits in the $30 to $40 range.

So if you woke up to an unexpected payment from Facebook this week, its not a scam its compensation for a long-resolved privacy issue that traces back more than a decade.

For more details or to check your payment status, visit the official settlement website or contact the claims administrator.