Facebook required to pay $750 per user, according to federal court ruling
In early 2010s, the class action lawsuit Fraley v. Facebook made headlines, challenging Facebook's practice of using users' names and photographs in Sponsored Stories ads without explicit informed consent. The lawsuit, which took place in a federal court in San Jose, California, alleged that Facebook infringed on patents related to Internet advertising methods.
The core legal question was whether Facebook's privacy policy adequately informed users and whether users gave valid consent for such commercial use of their likenesses. The court ruled that although Facebook directed users to the privacy policy, this was not sufficiently detailed to ensure users understood their data and images could be used in advertising. This suggested Facebook's consent mechanism was inadequate to excuse misuse under privacy protection laws.
California Civil Code § 3344, a key piece of legislation in this case, protects individuals—including non-celebrities—from unauthorized commercial use of their name, voice, signature, photograph, or likeness. The law requires consent to use a person's likeness "for advertising or selling purposes," and the quality of that consent is crucial.
The Fraley case's developments affirm that companies like Facebook must provide clear, informed consent mechanisms before using users' identities in commercial ads. Failure to do so risks violations of § 3344 by infringing on non-celebrities' publicity rights and privacy, exposing the company to class action suits and potential damages.
Notably, Judge Koh rejected Facebook's argument that non-celebrities must prove actual harm to prevail on a 3344 publicity claim. This ruling has implications for future cases involving digital platforms and personal data use for advertising purposes.
As of 2025, no recent updates indicate a final resolution or ongoing appeals in Fraley, suggesting the case has set important privacy precedence but is not currently active in courts. The case underscores growing legal scrutiny on digital platforms' use of personal data for advertising and reinforces protections for ordinary individuals under California law.
In light of the Fraley v. Facebook case, it is crucial for businesses, particularly digital platforms, to ensure they have clear, informed consent mechanisms before using their users' identities in commercial ads, as violations of California Civil Code § 3344 could lead to class action lawsuits and potential damages. This legislation, which protects individuals from unauthorized commercial use of their likenesses, highlights the importance of finance and business practices that adhere to privacy protection laws.
