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LinkedIn Agrees to $13 Million Settlement

Anyone who has ever joined LinkedIn knows that the social media giant sends out numerous emails. It’s fairly annoying, and the company doesn’t make it easy to opt out of their communications. That practice has gotten LinkedIn in some serious trouble. The company will be paying out at least $13 million next year in a settlement agreement that they recently signed.

Social%20Media%20Magnified%2044298834-001.jpgThe settlement agreement ends a class action lawsuit against LinkedIn. Known as Perkins v. LinkedIn, the case related to the website’s “Add Connections” function. Plaintiffs allege that the company did not provide adequate notice regarding the emails it would send to contacts in the member’s email address book. If LinkedIn users signed up for the Add Connections function, they were able to import contacts from any external email accounts. LinkedIn would then send an invitation email to many of these contacts. Contacts who ignored the email for a certain amount of time might receive up to two additional, reminder emails.

The court decided that while LinkedIn members who signed up for Add Connections did consent to have invitation emails sent to their contacts, they did not provide consent for the company to send any follow-up emails. Moreover, users were not asked for and did not give consent for their names and likenesses to be used in any follow-ups to the invitation email.

As part of the class action settlement, LinkedIn was not required to admit any wrongdoing. Similarly, the company denies each of the allegations made in the complaint.

LinkedIn users who are thought to be members of the class may have already received an email from the company letting them know about the settlement. Each email included a unique, 15-digit number to identify the claim. Others who feel they may be entitled to a portion of the settlement may apply to become a class member until December 14, 2015. Analysts suggest that class members may only receive about $10 each, but the lawsuit was aimed at punitive measures against LinkedIn. This outcome serves as a reminder to all companies that full disclosure of all email practices is imperative.