Merry Christmas Instagram: Facebook’s Mobile Photo App Hit With Class Action Lawsuit

Instagram, Terms of service, Class Action lawsuit, startup,startup newsWhile millions of people across the world were preparing for Christmas and undoubtedly filling their Instagram feeds with pictures of carolers, cooking, food, presents and of course Santa Claus, A woman from San Diego, Lucy Funes, and the law firm of Finklestein & Krinsk launched a class action lawsuit against the photo giant.

Instagram quickly found themselves under fire from irate users. Even some of their more infamous users like Kim Kardashian said they would quit using the service. National Geographic had taken down their Instagram feed. All of this stemming from a change in Instagram’s Terms of Service (TOS). You know those long legaleeze pages that you just automatically agree to so that you can start using an app.

In the originally changed TOS Instagram had basically said that they could use your photos for whatever they want without compensation. They also said they may choose to advertise alongside your photos, they didn’t have to tell you and you wouldn’t make any money from it. Of course, whether or not you agree with these terms, no one forces you to use their product. All the while, if you do, you’re making an agreement to abide by their terms.

Nevertheless, Instagram founder and CEO Kevin Systrom went ahead and back pedaled on the parts pertaining to copyright and using a users photos. The language about advertising remained in place.

Funes, most likely started the ball rolling for her class action lawsuit before Systrom apologized and changed the terms of service again, however the suit was filed.  The lawsuit says customers who don’t agree with Instagram’s terms can cancel their profile but forfeit the rights to photos they previously shared on the service.

“In short, Instagram declares that ‘possession is nine-tenths of the law and if you don’t like it, you can’t stop us,'” the lawsuit says.

Instagram catapulted to fame over the last few years. They were acquired by Facebook in early 2012 for what was believed to be a cash/stock deal worth $1 billion dollars at the time it was announced. Because of Facebook’s decline in stock valuation the deal is only worth about $715 million dollars now.

With the long holiday weekend it’s hard to tell if Funes will still push forward with the lawsuit since the new TOS language doesn’t lay claim to a users photos the way it previously did. We’ll hopefully find out more shortly.

The holidays are a big time for Instagram. They may see a little downtrend this year partially caused by users unsure of what’s happening with the Terms of Service and also because their sharing via Twitter went through a major overhaul earlier this month.

Linkage:

Source: Yahoo/Reuters

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Facebook Hit With $15 Billion Dollar Class Action Suit On IPO Day

Friday was supposed to be a great day for Facebook and by most accounts it was. There were many reports about a party and speech by Facebook founder Mark Zuckerberg on Thursday the eve of the IPO, that was one last hoorah.

Friday morning started off great. The stock debuted at $38 as it was supposed to. By midday trading it was up to $40.00 and then closed at $38.32. The performance on the stock market was so-so by some accounts, underwhelming by others. But that’s not that wasn’t the worst news for Facebook on Friday.

Facebook was served with a $15 billion dollar privacy related class action lawsuit on Friday. The lawsuit filed in Federal court in San Jose combines 21 previously filed privacy cases across the U.S. Law firms Stewarts Law and Bartimus, Frickleton, Robertson & Gorny are representing the plaintiffs.

Stewarts Law issued the following statement:

Facebook users today filed an amended consolidated class action complaint in federal court in San Jose, California in the case In re: Facebook Internet Tracking Litigation, No. 5:12-md-02314-EJD. The class action asserts federal statutory and California State causes of action related to the revelation in September 2011 that Facebook was improperly tracking the internet use of its members even after they logged out of their accounts. The action consolidates 21 related cases filed in more than a dozen states in 2011 and early 2012.

The plaintiffs assert claims under the federal Wiretap Act, which provides statutory damages per user of US$100 per day per violation, up to a maximum per user of US$10,000. Even if Facebook’s alleged actions constitute a single violation of the Wiretap Act per class member, that implies more than US$15 billion in damages across the class. The complaint also asserts claims under the Computer Fraud and Abuse Act, the Stored Communications Act, various California Statutes and California common law.

The class action is being led by court-appointed co-lead counsel Stewarts Law US LLP and Bartimus, Frickleton, Robertson & Gorny, P.C. David Straite, Partner at Stewarts Law, stated: “This is not just a damages action, but a groundbreaking digital privacy rights case that could have wide and significant legal and business implications.” In addition to co-lead counsel, the court has appointed a Plaintiffs’ Steering Committee which includes Keefe Bartels in New Jersey; Mandell, Schwartz & Boisclair in Rhode Island; Eichen Crutchlow Zaslow & McElroy in New Jersey; Bergmanis Law Firm in Missouri; Burns, Cunningham & Mackey in Alabama; and Murphy, Falcon & Murphy in Baltimore. The court has also appointed a committee of former State Attorneys General to advise the class, including former Mississippi AG Mike Moore, former Arizona AG Grant Woods, former Hawaii AG Margery Bronster, and former Louisiana AG Richard Ieyoub.

The lawsuit cites federal wire-tapping laws pertaining to Facebook tracking their users.  As you can imagine, on such an exciting day, Facebook hasn’t commented to any site on this matter.

source: Stewarts Law via TFTS