Meta to Pay $1.4 Billion in Facial Recognition Lawsuit

Facebook owner Meta has agreed to settle a lawsuit against the state of Texas for $1.4 billion. The lawsuit alleges that the social media giant has collected the biometric data of millions of citizens without their consent.
The settlement, which will be paid over five years, will become the largest ever brought about by legal action by a single US state.

Meta, Facebook’s parent company, has agreed to a $1.4 billion settlement with the US state of Texas. The settlement will resolve a lawsuit filed in 2022 alleging that Meta’s facial recognition software violated state laws about biometric privacy. The suit accused Meta of acting inappropriately via its tag suggestions feature on Facebook.

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The Suit

The lawsuit was initiated in 2022 by Texas Attorney General Ken Paxton, who claimed that Meta’s facial recognition technology collected the biometric data of millions of Texas-based users without correctly acquiring consent. Consequently, the company was alleged to have violated the Texas Capture or Use of Biometric Identifier Act (CUBI), which makes it mandatory for companies to obtain informed consent before collecting biometric data.

In addition to the payment, Meta will have to delete biometric data collected unlawfully while implementing privacy measures that are compliant with Texas law. The settlement, paid over five years, will become the largest ever brought about by legal action by a single US state.

The original suit also asked for a potential penalty of $10,000 per violation of the Texas Deceptive Trade Practices Act. Consequently, the settlement is expected to save Meta significant monetary resources.

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Meta’s Struggles With Biometrics

This is not the first time Meta has faced issues with its facial recognition technology, which was introduced in 2010. The feature added to Facebook automatically suggested tagging people in photos uploaded to the platform, triggering privacy concerns and legal challenges.

In 2019, the Federal Trade Commission (FTC) fined Facebook $5 billion for privacy violations related to its facial recognition technology. The FTC investigation found that Facebook had deceived users about its data practices and the ability of users to control the privacy of their data.

Following this, Facebook was made to set up a comprehensive privacy program and obtain user consent changes that affected privacy preferences. The company also had to agree to greater oversight by the FTC regarding its data practices.

End of Facial Recognition

While Meta has consistently denied any wrongdoing, in 2017, the company provided users with an On/Off option for tag suggestions. However, In November 2021, Meta announced that it would stop using facial recognition on Facebook and delete related data of more than a billion users to bolster user privacy and comply with regulations.

This came following a $650 million settlement over similar lawsuit claims related to the users in Illinois. The company cited growing societal concern about the technology, increasing uncertainty among regulators, and the evolution of user privacy expectations. The Texas lawsuit further solidified this.

Takeaways

The massive settlement with Texas highlights the growing scrutiny of big tech companies and challenges regarding data privacy practices. It urges companies to comply with biometric privacy laws and the need to gain user consent when collecting such sensitive data.

The settlement also creates a precedent for future legal action against technology companies that might be misusing biometric data. Governments and regulators must also create frameworks to protect consumer data in an increasingly digital world. As Meta continues navigating complex aspects of digital privacy, it could also create a roadmap for other companies regarding data and privacy regulations.