Facebook privacy settlement payments begin for millions of U.S. users

TOI World Desk | TOI Global Desk | Sep 10, 2025, 19:54 IST
Facebook privacy settlement payments begin for millions of U.S. users
Image credit : AP

Payments from Facebook’s $725 million privacy settlement have begun reaching U.S. users who filed claims, ending a long legal battle tied to the Cambridge Analytica data scandal. Eligible users will receive payouts over 10 weeks, with amounts based on account activity duration.

Millions of U.S. Facebook users are starting to see payments from a $725 million privacy settlement, ending a multi-year court fight over how the company treated personal information.



The settlement arose from allegations that Facebook, now Meta, permitted third parties, including political consulting firm Cambridge Analytica, to harvest data on users without their permission. The data was subsequently attributed to efforts to sway voter behavior in the 2016 U.S. presidential election.



Payments began in September 2025 and will continue over about 10 weeks, according to the settlement administrator. Only users who filed valid claims before the August 2023 deadline are eligible. Claimants will be notified by email three to four days before their payment is issued, with funds distributed in weekly batches.



Eligibility covered anyone in the U.S. who maintained a Facebook account between May 24, 2007, and December 22, 2022. Compensation amounts vary depending on how long each claimant actively used the platform. Under the settlement’s point system, each month of account activity counts as one point, with the total fund divided proportionally after legal and administrative costs. Longer-term users will receive larger payouts.



The path to payment was interrupted by appeals after approval of the settlement in 2023. Those appeals were settled in May 2025, opening the way for distribution.



The Cambridge Analytica scandal, which was revealed in 2018, showed that data of around 87 million users were gathered through a third-party application. The scandal resulted in congressional testimony by Facebook CEO Mark Zuckerberg, increased supervision of social media firms, and amplified public concern regarding online privacy.



Although payments per individual will not be significant, privacy advocates note that the settlement shows the value of protecting data. "Even modest compensation sends a strong message that users' personal information has value and companies have to be held accountable when they don't protect it," commented David Vladeck, a former director of the Federal Trade Commission's Bureau of Consumer Protection.



Approved claimants are recommended to look into their email for payment alerts and ensure that bank information is still current. The settlement administrator stressed the possibility of delays considering the phased payout process.



Although the claims process is shut, activists urge that the case has a wider lesson for online users: check privacy settings regularly, reduce extraneous data sharing, and educate oneself on how personal data is used and gathered.

Tags:
  • social media
  • facebook settlement
  • meta
  • privacy breach
  • data privacy
  • mark zuckerberg
  • online privacy