Facebook users who filed claims in the landmark privacy settlement are seeing payments arrive, and the big question is how much. Early reports indicate relatively modest sums for most payees. That’s typical for a victim compensation payout in a massive class-action fund that goes through millions of affected people. The reported payouts tend to settle around $30 per claimant as consumer sites and publications compile them. Most fall in the low-to-mid $30s, with a few outliers approaching the high $30s.
The range is natural. The settlement pays out of a pre-tax $725 million fund across all certified claimants, with amounts determined by a linear formula based on how many months claimants held a Facebook account during the defined window. The amount of payment differs for each person. Accounting is pro rata.
After administrative costs and court-approved attorneys’ fees, what remains is allocated based on “bands” measured by the number of months each claimant had an account in the class window. More months accumulate more points, and thus a larger portion of the fund.
Think of it as a pie sliced over time. A person credited in the eligible window for a decade would typically recover at least double the amount of someone with five years, for identical claims that are similarly approved. That is the natural result of dividing the pie along the flow of time.
About $100 million in payments recently flowed from the administrator, who allocated amounts according to the time-based formula, as though slicing a time pie. Judge Seeborg oversees the settlement and authorizes distributions.
Who qualifies for compensation under the Facebook case
The case is connected to the Cambridge Analytica information-gathering scandal and related data-sharing practices. A claimant may receive benefits if they are a U.S. Facebook user who had an account during the eligible period and submitted a valid claim. A California federal court managed the settlement approval.
How users are receiving payments and what to expect
Users are being paid by the settlement administrator through methods selected on their claim forms, including electronic transfers such as Venmo, as well as paper checks for some claimants. Processing and verification steps can take time before funds are released.
If your payment is delayed, here is what to check
If you filed and have not yet seen funds, keep an eye on the email address associated with your claim for notices from the settlement administrator, and remember to check your spam folder. There are many reasons distributions can be delayed, reduced, or eliminated, including:
- Multiple claims were filed under the same claim ID
- Payment details are unknown, mismatched, or cannot be verified
- Your claim could not be validated by the administrator
The official claims website is presently unavailable, and new claims cannot be submitted.
What the numbers and comparisons reveal about payouts
Reuters has reported that the settlement has many millions of validated claims, making it one of the most substantial consumer privacy distributions to date. The typical amount trends low because there is a fixed fund and a large class. The math — the total fund, less fees and costs, split by time-weighted claim scores — suggests that most people will receive around $20 to $40, even though some people were expecting payments in the hundreds of dollars.
By comparison, a Facebook biometric privacy litigation paid roughly $397 per class participant. It was smaller and limited to a single state, as well as facial-recognition claims. Smaller classes generally yield higher per-person payments than large national settlements that cover hundreds of millions of users.
Taxes, potential red flags, and safety considerations
Class-action awards can be subject to income tax; you may receive a tax form if thresholds are met, but income may need to be reported even without one. If you have any doubts, consult a financial or tax professional. Avoid third parties who offer to expedite or advance your payment for a fee; this is unnecessary for a lawful distribution.
Bottom line on expected payout amounts for claimants
If you filed a valid claim, your amount — around $30 — will be slightly higher or lower based on how long you kept your account open during the covered years. The checks and transfers showing up now have been calculated according to a standard class-action formula: a fixed fund, a large class, and a time-weighted split. It’s not a lot of money, but it is one of the few real, concrete results of a major consumer privacy lawsuit.