Friday, May 18, 2012

Facebook's Trading Day Begins with... a Wiretap Lawsuit

Facebook is being sued for $15 billion for tracking users, even after they have logged out of the social network, and violating federal wiretap laws.

Today’s lawsuit, filed in Federal Court in San Jose, California, combines 21 separate cases across the U.S. in 2011 and early 2012... If the claimants are successful in their case against Facebook, they could prevent Menlo Park from collecting the huge amount of data it collects about its users to serve ads back to them.

Like the previous lawsuits, Facebook is once again being accused of violating the Federal Wiretap Act, which provides statutory damages per user of $100 per day per violation, up to a maximum per user of $10,000. The complaint also asserts claims under the Computer Fraud and Abuse Act, the Stored Communications Act, various California Statutes, and California common law. It’s worth noting that similar cases against Facebook and others filed under the wiretap law have been thrown out because browser cookies are simply not considered wiretaps and plaintiffs have difficulty proving any harm. (more)