Guide Note

Facebook Beacon is a controversial new advertising platform from Facebook. Toted as the holy grail for advertisers it displays actions (such as purchases from partner websites) within a user's Facebook news feed.¹ Participating sites include Fandango, eBay, Travelocity and Blockbuster. Coca-Cola was an initial participant, but withdrew support when they discovered Facebook Beacon was not an opt-in service.² On December 7, 2007, Facebook allowed its users to turn Beacon off completely if they so desire.³

Fast Facts

1. Introduced November 6, 2007 at the Facebook Advertising Announcement¹
2. Generated user concern over the privacy of information shared with other members⁴
3. Integrated with Blockbuster Video
4. Posts what you are doing on participating sites to your Facebook profile

The first lawsuit against Facebook Beacon was reported on TechCrunch on April 17, 2008. The plaintiff is a woman from Texas who is suing Blockbuster for violating the Video Tape Protection Act by using people's images and purchase information without their permission.⁵ A class action lawsuit was issued on August 12, 2008, in California's North District Court.⁶ The lawsuit states, "The Beacon program sent information regarding specific user transactions on Facebook Beacon Activated Affiliates' websites to Facebook regardless of whether the user was a Facebook member or not. Thus, no consent was sought, nor was any consent obtained from persons who utilize the Facebook Beacon Activated Affiliate's website who were not Facebook members..."⁶ Beacon affiliates such as Blockbuster, Fandango and Overstock.com are also included in the clash action lawsuit.⁶