<b><i>Online Extra:</b></i> Facebook Wins Appeal Over Social Ads

Facebook Inc. won an appeal on Oct. 30 over the company's use of minors' names and likenesses in its “social ads” program.

The U.S. Court of Appeals for the Ninth Circuit upheld a lower court ruling tossing out claims brought on behalf of minor Facebook users in'a three-page unpublished memorandum.

Lawyers at Korein Tillery in St. Louis sued Facebook in 2011 claiming that various state laws barred users under 18 from consenting to the site's terms of service. Those terms included a provision giving the company the right to use their names and likenesses in ads.

U.S. District Judge Richard Seeborg dismissed the suit last year finding that the plaintiffs had legitimately granted Facebook the right to use their names and pictures in exchange for the benefits gained from using the site.

In the decision, Circuit Judges William Fletcher, Marsha Berzon, and Carlos Bea rejected plaintiffs' contention that they had disavowed their earlier approval of Facebook's terms of service by suing the company.

“By continuing to use facebook.com after bringing their action, plaintiffs manifested an intention not to disaffirm the contract,” they wrote.

Korein Tillery's Aaron Zigler, who handled arguments at the Ninth Circuit for the plaintiffs last month, didn't immediately respond to messages Friday afternoon.

Munger, Tolles & Olson's Daniel Levin, who argued for Facebook, wasn't immediately available. A Facebook spokesperson said the company is “pleased with the ruling.”

The Ninth Circuit panel that handed down the decision also heard'a challenge to Facebook's $20 million deal'to settle claims related to its “sponsored stories” program. That appeal remains pending.

Ross Todd writes for The Recorder, an ALM sibling of Internet Law & Strategy. He can be reached at'[email protected].

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Facebook Inc. won an appeal on Oct. 30 over the company's use of minors' names and likenesses in its “social ads” program.

The U.S. Court of Appeals for the Ninth Circuit upheld a lower court ruling tossing out claims brought on behalf of minor Facebook users in'a three-page unpublished memorandum.

Lawyers at Korein Tillery in St. Louis sued Facebook in 2011 claiming that various state laws barred users under 18 from consenting to the site's terms of service. Those terms included a provision giving the company the right to use their names and likenesses in ads.

U.S. District Judge Richard Seeborg dismissed the suit last year finding that the plaintiffs had legitimately granted Facebook the right to use their names and pictures in exchange for the benefits gained from using the site.

In the decision, Circuit Judges William Fletcher, Marsha Berzon, and Carlos Bea rejected plaintiffs' contention that they had disavowed their earlier approval of Facebook's terms of service by suing the company.

“By continuing to use facebook.com after bringing their action, plaintiffs manifested an intention not to disaffirm the contract,” they wrote.

Korein Tillery's Aaron Zigler, who handled arguments at the Ninth Circuit for the plaintiffs last month, didn't immediately respond to messages Friday afternoon.

Munger, Tolles & Olson's Daniel Levin, who argued for Facebook, wasn't immediately available. A Facebook spokesperson said the company is “pleased with the ruling.”

The Ninth Circuit panel that handed down the decision also heard'a challenge to Facebook's $20 million deal'to settle claims related to its “sponsored stories” program. That appeal remains pending.

Ross Todd writes for The Recorder, an ALM sibling of Internet Law & Strategy. He can be reached at'[email protected].

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