Facebook Settlement Payments Roll Out Nationwide

Lead Payments have begun today for millions of eligible Facebook users under a $725 million consumer privacy settlement, with notices sent via email and disbursements scheduled over the next ten weeks.

Nut Graf The class-action agreement, which resolves claims that Facebook improperly shared user data with third parties including Cambridge Analytica, allows U.S. users who maintained active accounts between May 24, 2007, and December 22, 2022, to receive payouts based on how long they used the platform.

Main Part

What’s happening now

  • Approved claimants received an email from “Facebook User Privacy Settlement Administrator” today, notifying them that their payments will be issued in three to four days.
  • Disbursements commenced on September 9 and will continue in rolling phases through mid-December.

Payout amounts

  • The smallest payment is $4.89 and the maximum is $38.36, determined by a point system granting one point per month of account activity during the class period.
  • After attorneys’ fees and administrative costs, about $540 million remains for distribution among roughly 28 million valid claimants.

How to check status

  • Users can visit the settlement website or await email updates confirming claim approval and payment schedule.
  • Payments will be delivered via direct deposit, prepaid debit card, Venmo, PayPal or mailed check, depending on the method selected on each claim form.

Background

  • The settlement stems from lawsuits alleging that Facebook allowed unauthorized access to user data by third-party developers, advertisers and data brokers, most notably Cambridge Analytica in 2018.
  • Meta, Facebook’s parent company, denied wrongdoing but agreed to settle in December 2022 to avoid further litigation.

Next steps for users

  • Claimants who have not yet provided payment details must update their information on the settlement portal within 30 days of their email notice to receive funds.
  • Those who miss the deadline may forfeit their share of the settlement.

Consumer takeaway While individual payments are modest, the distribution marks a significant moment in tech accountability-underscoring the importance of data privacy and class-action remedies in the digital age.