Facebook Shuts Down Beacon Program, Donates $9.5 Million to Settle Lawsuit

Facebook has agreed to shut down a program that sparked a lawsuit alleging privacy violations, and set up a $9.5 million fund for a nonprofit foundation that will support online privacy, safety and security. The lawsuit centers around Facebook’s Beacon program, which let third-party web sites distribute stories about users to Facebook. Beacon was launched in November 2007 and less than a year later plaintiffs filed a class action lawsuit alleging that Facebook and its affiliates did not give users adequate notice and choice about Beacon and the collection and use of users’ personal information. In addition to Facebook, the lawsuit’s defendants include Blockbuster, Fandango, Hotwire, STA Travel, Overstock.Com, Zappos.com and Gamefly