Facebook Inc has agreed to allow users more control over how their personal information is used in its “Sponsored Stories” ad feature, part of a deal to resolve litigation against the social networking company. The potential loss of revenue to Facebook resulting from the changes is the equivalent of about $103 million, in the opinion of one economist hired by the plaintiffs.

A “Sponsored Story” is an advertisement that appears on a member’s Facebook page and generally consists of another friend’s name, profile picture and an assertion that the person “likes” the advertiser.

Story length: 322 words

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