Facebook has begun distributing payments to users as part of a $725 million settlement over claims the platform misused personal data.
The payments, now being issued in waves, come nearly five years after Meta, Facebook’s parent company, was first accused of allowing third-party access to user information without consent.
Why It Matters
The payment represents the largest data privacy settlement ever approved in the U.S. and underscores the growing legal pressure on tech companies to safeguard user data.
It follows a broader reckoning for Facebook over its business model, which has been accused of operating on “surveillance capitalism.”
The U.S. Federal Trade Commission fined Facebook $5 billion in 2019 for failing to comply with a 2012 agreement requiring stronger data protections. This current settlement is a separate class-action resolution with affected users.
What To Know
Millions of users who used Facebook in the U.S. between May 2007 and December 2022 and filed a valid claim by the August 2023 deadline are now eligible to receive their share.
While the total settlement was among the largest in tech privacy history, individual payouts are expected to be modest due to the scale of claimants.
The litigation was triggered in the aftermath of revelations that Facebook data was improperly shared with Cambridge Analytica, a now-defunct firm hired by Donald Trump’s 2016 campaign.
Meta has denied wrongdoing, but agreed to the settlement to avoid the costs and risks of trial, and bring the matter to a quick conclusion.
Eligible claimants who used Facebook during the 15-year period and filed a claim by August 25, 2023 will be notified via email several days before their payment is issued. The funds are being distributed over a 75-day window that began in late August 2025.
From the $725 million total, substantial sums were first allocated for legal fees and lead plaintiff payments. Specifically, $180 million went to attorneys, $120,000 to class representatives, and nearly $4 million to administrative costs, leaving approximately $541 million for distribution among approved claimants.
The payment each user receives is determined by “allocation points,” which are based on how long a person used Facebook during the eligibility window.
For example, someone who used Facebook for 24 months between 2007 and 2022 receives 24 points. Payments are then divided proportionally based on total points across all claimants.
What’s Next
Payments are continuing to roll out through the fall and will conclude by mid-November. Anyone who did not submit a claim by the August 2023 deadline is ineligible to receive funds.
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