Facebook has agreed to pay $40 million to advertisers who said it exaggerated the length of time its users watched videos, AP reported on Tuesday October 8th.
The California-based social media giant denied any wrongdoing in a court settlement which was filed on Friday by the plaintiffs in Oakland federal court, San Jose Mercury News said.
Advertisers sued Facebook in 2016 over user metrics that supposedly measured the average length of time consumers spent viewing posted video advertisements. In the court case, Facebook was accused of inflating the time by up to 900%, something which helped convince advertisers to buy Facebook's video advertising services.
Facebook publicly admitted an error in the formula but denied allegations that its engineers had known about problems for more than a year without taking action.
On Monday, several state attorneys general met officials from the Justice Department and the Federal Trade Commission, New York Attorney General Letitia James said in a statement. The group met US Attorney General William Barr to discuss the Facebook enquiry, according to Reuters.