A recent report has revealed that a class action taken by five Facebook members last year has now been agreed to be settled by the site.

It has been found that the site was alleged of using images and liking of a page for commercial purpose. The social networking site was asked to stop the “Sponsored Stories” feature as it had been publicizing users’ personal information without any option to say ‘no’ or a compensation.

Sponsored stories are the advertisements that appear on the Facebook page when a friend ‘likes’ an advertiser. It is displayed along with the friend’s name, image and a statement about his liking.

San Jose, California federal Court has heard that these ads have almost three times more value than an ordinary Facebook. com ad, which is without a friend’s support. It has been found that Facebook has realized a total fall of
18% in shares ending at $31 on Monday and Tuesday.

While saying that the plantiffs did not show any evidence that these ads hurt them, Facebook along with the other party has agreed upon the settlement “in principle”. Also, another hearing for class action certification is to be held on Thursday, says the report.