Facebook set to turn its users into corporate sponsors


  • ‘Sponsored’ links move into site’s main news feed
  • Users pictures and names will be used in larger adverts
  • Friends will be shown adverts featuring your face

By
Damien Gayle

Last updated at 11:42 AM on 27th December 2011

Facebook users could become unwitting corporate ambassadors under plans by the company to allow the site’s main news feed to carry sponsorship messages carrying their mugshots.

Beginning in the New Year, so-called ‘sponsored stories’ will appear in the main news feed that Facebook users’ friends see. At present, if you click to ‘like’ a product, the resulting ad is buried on the right side of the page.

The new update will show friends your profile picture and the product you have ‘endorsed’ in much larger form in the main news feed – a move that the site admits is designed to bring in advertising revenue.

Like? Facebook users could soon find themselves becoming unwitting corporate sponsors under a new advertising scheme unveiled by the social network

Like? Facebook users could soon find themselves becoming unwitting corporate sponsors under a new advertising scheme unveiled by the social network

Facebook say the scheme is a vital
revenue booster, which will help it claw back some of the $1billion a
year it spends on developing the site.

The site claims that because the stories are labelled ‘Sponsored’, they will be less intrusive.

If a user decides to ‘like’ a product,
the endorsement will also remain on their new, open  ‘timeline’ profile, enabling companies to
pay Facebook to feature their adverts more visibly.

But
the announcement will infuriate users who feel that the social network
is taking too much ownership over its 800milllion members’ personal
information.

Facebook
users in the U.S. have now launched a legal action against the company
to contest the commercial use of the ‘Like’ button.

A
judge in San Jose, California, has allowed plaintiffs to bring a case
against Facebook in which they argue that the company is using their
names and likenesses without their authorisation.

Judge Lucy Koh dismissed an attempt by the company to have the case thrown out, saying: ‘In the same way that celebrities suffer economic harm when their likeness is misappropriated for annother’s commercial gain without compensation, plaintiffs allege they have been injured by Facebook’s failure to compensate them for the use of their personal endorsement.’

The dispute centres on Facebook’s ‘like’ button, which allows users to virtually approve of a post by other users, or a product, with a single click.

These approvals then appear on that person’s profile page, and allow the social network to build up a profile of the user to target advertising.

Ireland's privacy watchdog, the Data Protection Commisioner, has identified dozens of areas where Facebook needs to change the way it work

Ireland’s privacy watchdog, the Data Protection Commisioner, has identified dozens of areas where Facebook needs to change the way it work

The case will be heard next year. Facebook said in an email statement: ‘We are reviewing the decision and continue to believe the case is without merit.’

The case comes after as a privacy watchdog set Facebook a 2012 deadline to change dozens of policies to improve users’ privacy.

Ireland’s privacy watchdog, the Data Protection Commisioner, audited Facebook’s international headquarters in Dublin and identified dozens of areas where the company needs to change the way it works.

The judgement will have implications for users throughout Europe and around the world – including changes to the site’s use of data harvested from adverts, and its warnings about how users’ personal information might be used for targeted advertising.

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

Simply swap to google+ give FB some real competition!!

Someone has to stop this company from screwing the people who use the site,they change the layout and privacy in the site so often people do not know what the rules are (unless a paper etc picks up the story). Facebook saying they need the money to offset the $1billion a year it spends on developing the site is a joke as they are the ones hell bent on changing it every month..

Easy solution don’t have a face book… Life without FB is wonderful try it 🙂

Facebook is dong nothing wrong here. Anyone who feels strongly about it can remove their Facebook page. I don’t know why the DM website has such hatred for social networking – but I am sure its readers overwhelmingly disagree with it and think the constant scare tactics are ridiculous.

Simple – facebook users just don’t click against any product – not rocket science.
Incidentally, the DM website is packed with adverts down the left side of the page…..I assume you will be stopping these as part of your anti advert internet campaign!

Hope we the users get given the money for doing so….

Don’t bother launching any legal action – just permanently close your accounts. Facebook has your info and will continue to exploit you at every available opportunity. That’s how they monetise Facebook – what….. You thought it was free!!

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