What is a sponsored story on facebook?

[Jessica]

"The lawsuit was initially filed on behalf of Facebook users objecting to the use of their names and pictures in Sponsored Stories, ads which turn a user's Likes into ads appearing in friends' news feeds. The lawsuit argues the ads are a violation of privacy, as they turn users into spokespeople and endorsers without their direct approval."

What it's really saying is that,
When you like a certain image or product of a company on facebook, then your friends will see it on their news feed.
For example, you like the page "Michael Kors" or whichever company you prefer.
Then, Michael Kors shows a certain product on your news feed, you think it's cute or whatever, and you click "like."
When you click like, your friends will then see it on their news feed.
That's all it is basically, liking a product and it shows up on your friends' news feed.
so it's saying that they are using your name to "advertise" a product without your consent.