Facebook to Pay $40 Million to Advertisers Who Say It Inflated Number of Views on Videos

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The Facebook logo is displayed during the F8 Facebook Developers conference on April 30, 2019 in San Jose. (Credit:Justin Sullivan/Getty Images)

The Facebook logo is displayed during the F8 Facebook Developers conference on April 30, 2019 in San Jose. (Credit:Justin Sullivan/Getty Images)

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Facebook has agreed to pay $40 million to advertisers who said it inflated the amount of time its users watched videos.

The San Jose Mercury News says the California-based social media giant denied any wrongdoing in a lawsuit settlement. The settlement notice was filed Friday by the plaintiffs in Oakland federal court.

Advertisers sued Facebook in 2016 over user metrics that supposedly measured the average length of time consumers spent viewing posted video ads. The lawsuit said that the time was inflated by up to 900 percent and that helped convince advertisers to buy Facebook’s video advertising services.

Facebook publicly acknowledged an error in the formula. The company denied allegations that its engineers knew about problems for more than a year and did nothing.

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