Facebook Agrees to Pay USD 40 Million to Settle Video Metrics Case

The complainants alleged that Facebook exaggerated the average time Facebook users spent on watching a video.

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Various advertising companies on Friday, 4 October, disclosed the details of a settlement with Facebook that proposed to end a “class action”. The complainants alleged that Facebook exaggerated the average time Facebook users spent on watching a video, reported The Hollywood Reporter.

As per a document, out of $40 million dollar that Facebook would pay to settle the claims, some share of the money would be given to those who bought ad time in videos. “Though $12 million, or 30 percent of the settlement fund, is earmarked for plaintiffs' attorneys,” added the report.

Facebook has been blamed not taking full responsibility even though it acknowledged errors.

According to The Hollywood Reporter, a complaint stated, "The average viewership metrics were not inflated by only 60 percent-80 percent, they were inflated by some 150 to 900 percent.”


Facebook questioned whether the advertisers really depended on these calculations in order to decide ad time purchase. Initially, till the time no settlement was announced, various accusations existed. Though the social media giant agreed to pay $40 million as an amount for settlement, Facebook claims that the case is "without merit."

A Facebook spokesperson had earlier said, "This lawsuit is without merit but we believe resolving this case is in the best interests of the company and advertisers,” reported The Hollywood Reporter.

According to plaintiffs, if they had gone for a trial, they estimated a recovery amount between $100 to $200 million in damages. However, they also worry about the unsure result and the cost that this process would involve.

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Topics:  Facebook   Advertising 

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