Last Updated on: 15th October 2019, 09:39 am

Facebook Has Been Charged $40 Million for falsifying About Video Statistics

Many advertising agencies companies on Friday declared a proposed agreement with Facebook that will terminate a class action lawsuit, declaring that the social media colossus overemphasized the average time its consumers spend watching videos.

As stated by the documentation that encourages the agreement, Facebook would pay $40 million for the agreement and while the large part of it will go to those who purchased ad time in videos, $12 million — or 30% of the agreement — will go to plaintiffs’ attorneys.

Details Of The Case

The suit claims that while Facebook acknowledged inaccuracies in metrics on press releases, it didn’t take liability for the problem. “The average viewership metrics had not been increased by only 60%-80%; they had been increases by some 150 to 900%,” expressed the modified complaint.

The suit had been filed last year by small companies located in California and a man in Pennsylvania, who had purchased ad space on Facebook.

Facebook brawled back against the so-called violation of unfair competition law, breaking the contract and committing fraud, asking whether the advertisers actually depend on these metrics in deciding to buy ad time.

In initial stages in the litigation, they had been successful in getting the judge to trim the claims but until an agreement was declared, multiple asserts including fraud were still live. Facebook maintains that the suit is “without merit”, even after consenting to pay $40 million.

Read the complete memorandum in the interest of an agreement.

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