Facebook said Tuesday it has settled a lawsuit with the Federal Trade Commission accusing it of violating its agreement with consumers to remove advertising from the platform.
The FTC alleged Facebook violated its promise to pay consumers to opt-out of ads that promote the company’s products, including ads for drugs, food and other products.
Facebook said in a statement it had “accepted the FTC’s request for an order to settle the complaint.”
The settlement, which will be filed in the U.S. District Court for the Northern District of California, is for $25 million, with the remaining $25M to be paid by Facebook.
Facebook says it will pay a “substantial” portion of the settlement to consumers whose ads were removed from its platform.
Under the terms of the agreement, Facebook is required to make its ad removal policy publicly available.
The company is also required to report on the status of all complaints alleging advertising violations, and will provide consumers with a means to report their complaints to Facebook.
The complaint also alleged Facebook’s advertising platform has been used to promote a range of products and services that violate the FTC Act, including a drug promotion for a drug that was promoted to users by Facebook, a food product promoted to consumers by Facebook and a movie theater promotion for an ad featuring the characters from a film that was posted to Facebook’s “Like” button.
Facebook, which has been under FTC scrutiny since late 2016, has not commented on the settlement.
The FTC filed a civil lawsuit against Facebook in January in California, accusing the company of misleading consumers and misleading advertisers about the effectiveness of its advertising platform.
Facebook is not the only social network to face FTC scrutiny in recent months.
The agency in April also filed a complaint with the FTC accusing the social media platform of engaging in deceptive conduct, violating the Fairness Doctrine and unfair competition, among other allegations.