Meta, formerly known as Facebook, has agreed to pay a record-breaking $1.4 billion settlement to the state of Texas over allegations of unlawful use of facial recognition technology, as reported by Reuters and McKool Smith. This landmark case, resolved on July 30, 2024, marks the largest settlement ever obtained by a single state in a privacy lawsuit against a tech company.
Key points of the settlement:
- Meta will pay $1.4 billion to the state of Texas.
- The payment will be made in installments over five years.
- The settlement resolves allegations that Facebook violated Texas' biometric privacy laws.
The unprecedented $1.4 billion settlement will be paid in installments over five years, with the first payment of $500 million due within 30 days of the agreement's effective date. This resolution stems from allegations that Facebook illegally collected biometric data from millions of Texans without their consent through its facial recognition technology. The lawsuit, filed in 2022, was the first major case brought under Texas' 2009 biometric privacy law, which allows for damages of up to $25,000 per violation. This settlement not only sets a new benchmark for privacy-related legal actions against tech giants but also underscores the growing importance of data protection and user privacy in the digital age.
The lawsuit, filed in 2022, accused Facebook of capturing biometric information "billions of times" from photos and videos uploaded by users to the social media platform. This was part of a free, discontinued feature called "Tag Suggestions" that could recognize a user's friends in a photo and suggest tagging them. Texas alleged that Meta misrepresented how it was using biometric identifiers and failed to destroy collected data within a reasonable time. The case was scheduled for a jury trial in June, but the parties agreed to settle on the eve of trial, asking the court to pause proceedings to finalize settlement terms.
Attorney General Ken Paxton emphasized the significance of the settlement, stating,
"This historic settlement demonstrates our commitment to standing up to the world's biggest technology companies and holding them accountable for breaking the law and violating Texans' privacy rights".
Sam Baxter and Jennifer Truelove from McKool Smith, representing Texas in the case, highlighted the importance of corporate accountability, noting,
"Companies that operate in Texas must be held accountable for their actions, particularly when it puts the privacy of Texans at risk".
This settlement highlights the growing importance of data privacy and the potential consequences for tech companies that mishandle user information. It also sets a precedent for other states considering similar lawsuits against big tech firms.
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Photo by Julio Lopez: https://www.pexels.com/photo/holding-a-smartphone-with-the-threads-app-with-the-meta-platforms-logo-in-the-background-17614476/
