A federal appeals court has upheld a 2013 settlement agreement in Fraley v. Facebook, a consumer privacy class action involving Facebook's use of young children's names and images for advertising without consent. That practice is currently prohibited in seven states. Questions were also raised about the cy pres determinations. In dissent, Judge Bea stated that the "district court abused its discretion in approving the final settlement." In an amicus brief to the Ninth Circuit, EPIC urged the appeals court to overturn the deal, explaining that the settlement is unfair to class members and authorizes continued privacy violations. In 2010, EPIC and a coalition of consumer privacy organizations filed an extensive complaint with the Federal Trade Commission that eventually required Facebook to improve its privacy practices.
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Privacy Law Sourcebook (2016)