The average payout per person in the Facebook settlement is dependent on numerous variables.
In 2023, Facebook’s parent company, Meta Platforms, agreed to a massive privacy settlement following multiple lawsuits accusing the social media giant of mishandling user data. The class-action settlement totaled $725 million — one of the largest of its kind.
Background of the Lawsuit
The lawsuits stemmed from Facebook’s data-sharing practices, including the Cambridge Analytica scandal. The company was accused of allowing third-party applications to access personal data of millions of users without explicit consent.
Meta denied wrongdoing but agreed to the settlement to resolve years of litigation.
Who Was Eligible
The settlement applied to Facebook users in the United States who had active accounts between May 24, 2007, and December 22, 2022.
Participants were required to submit a claim form online by August 2023 to qualify for compensation.
How Payments Were Calculated
Each claimant’s payout depended on how long they had an active Facebook account during the covered period. The more years of use, the higher the payment.
After administrative and legal fees were deducted, around $500 million remained for distribution among claimants.
Average Facebook Settlement Payout Per Person
By late 2024, users began receiving payments. According to official reports, the average payout was approximately $30 per person, though amounts varied. Some users received as little as $5, while others got over $100, depending on their account activity and state of residence.
How Payments Were Sent
Claimants could choose to receive payments via PayPal, Venmo, direct deposit, or mailed check. The process took several months to complete due to the high volume of applicants — more than 17 million claims were filed.
Broader Implications
The Facebook settlement marked a turning point in online privacy accountability. It underscored growing consumer awareness about data protection and the potential consequences of privacy breaches.
Meta, now focusing on its metaverse and AI ventures, has pledged stronger privacy safeguards and greater transparency moving forward.