Facebook has reached a massive $725 million settlement over the misuse of users’ data. The settlement is a major data privacy class-action settlement, one of the largest in U.S. history. The case is linked to a scandal between Meta (Facebook’s parent company) and Cambridge Analytica, in which personal data of millions of users was shared without their permission and used for political advertising. If you used Facebook between May 24, 2007, and December 22, 2022, you could get a payout from this settlement, but only if you filed your claim by August 25, 2023. Now, in April 2025, the payout process is expected to begin soon, as long legal appeals are coming to an end.
The settlement is a big sign of how digital privacy violations can impact our real lives. While the deadline to file a claim has now passed, the upcoming payouts are an important milestone that shows that big tech companies can be held accountable for their responsibilities. If you filed a claim, expect your payout in 2025.
What About the $725 Million Facebook Payouts?
Cambridge Analytica Scandal
In 2018, Facebook made headlines when it was revealed that a political data firm called Cambridge Analytica accessed personal information from more than 87 million Facebook profiles without permission. This data was used to target political campaigns, especially during the 2016 U.S. presidential election.
The incident led to criticism around the world and investigators in several countries took action against Facebook. There were hearings in the U.S. Congress, and international regulators also recognized the seriousness of the issue.
Meta’s Stance
Facebook’s parent company, Meta Platforms Inc,. denied any legal wrongdoing but eventually agreed to settle for $725 million in December 2022 to avoid a protracted legal battle. The move is one of the biggest tech settlements related to data privacy.
Timeline of Events
| Date | Event |
|---|---|
| 2018 | Cambridge Analytica data abuse comes to light |
| 2020 | Class-action lawsuit filed in California federal court |
| December 2022 | Meta agrees to pay $725 million |
| March 2023 | Preliminary approval of settlement |
| August 25, 2023 | Deadline to file claims (now closed) |
| October 2023 | Final approval granted by federal judge |
| February 2025 | Appeals court hears objections; settlement upheld |
| Mid to Late 2025 | Payouts expected to begin |
How Much Will You Get Paid?
If you filed a valid claim, the amount of payment you receive will depend on how long you used Facebook. People who have been using Facebook for a longer period are likely to receive a higher payment.
For example, if you used Facebook from 2007 to 2022, your payment could be more than the average of $30.
The final payment amount will be determined by the total number of valid claims, and subtracting attorney fees.
How Will You Be Paid?
You chose your preferred payment method when you filed your claim. Available options include:
- Direct deposit to a bank account
- PayPal
- Venmo
- Zelle
- Check by mail
- Prepaid MasterCard
Why This Settlement Is Important: Lessons for Users and Businesses
This case serves as a reminder that both consumers and companies need to understand the importance of data privacy.
For Facebook Users:
- Always look at app permissions carefully.
- Know how your data is being used and who it is being shared with.
- Keep your privacy settings updated so as little of your information is shared as possible.
For Businesses:
- User permissions and transparency are a must.
- Breakdowns in data protection can lead to legal, financial, and reputational problems.
- Compliance with data protection laws such as GDPR and CCPA is a must.
Frequently Asked Questions (FAQs)
Can I File a Claim Now?
No, the deadline to file a claim was August 25, 2023, and no late-filed claims will be accepted now.
When Will Payments Be Made?
Payments are expected to begin in mid or late 2025, but this will depend on the final legal appeals and the completion of administrative processes.
How Can I Check My Claim Status?
You can contact the Settlement Administrator at facebookuserprivacysettlement.com or send an email to info@facebookuserprivacysettlement.com.
Will I Have to Pay Taxes on the Settlement?
It is possible. The settlement amount may be taxable, depending on your income and location. You may want to consult a licensed tax professional.
What If I Deleted My Facebook Account?
If you deleted your Facebook account, you were still eligible during the time you were using Facebook. Deleting your account later will not affect your claim.
Conclusion
Facebook’s $725 million settlement shows that big tech platforms can be held accountable for their responsibilities. However, filing a claim may require a trial date.
