Clearview AI Encounters Legal Hurdles in Canada and UK

Published Date : 7/18/2025 

Clearview AI, a controversial facial recognition company, is facing new legal battles in Canada and the UK. The firm is fighting a revived class action in Canada and a multimillion-pound fine in the UK, adding to its existing legal troubles. 

Clearview AI, a company that has been at the center of numerous legal and regulatory disputes, is facing fresh legal challenges in Canada and the UK. The company, known for its facial recognition technology, has already had a tumultuous year, including the ousting of its founder and CEO, Hoan Ton That, in April. In May, Clearview settled a long-running biometric data privacy lawsuit in the U.S., which granted plaintiffs a 23 percent equity stake in the company, valued at around $51.75 million. However, more litigation in the U.S. may be on the horizon.

A new blow has come from Canada, where the Federal Court of Appeal has revived a proposed class action against Clearview AI, according to Law360 Canada. Clearview operated in Canada from 2019 to July 2020, providing facial recognition services to the Royal Canadian Mounted Police (RCMP). The company suspended its services in the country following a class action filed with the Federal Court of Canada on July 8, 2020, and in response to critical recommendations from the Office of the Privacy Commissioner over potential privacy violations.

On July 16, 2023, Justice Elizabeth Walker rejected Clearview’s legal arguments against the class action, which centered on the “opt-out” nature of Canadian class actions. Under Canadian law, most class actions automatically include members who meet criteria outlined in a certification order. Those who wish to be excluded must opt out. Clearview argued that query-based class identification, which requires potential class members to query the company to confirm their inclusion, undermines this opt-out scheme, effectively making it opt-in. However, Justice Walker’s ruling stated that this is not the case.

“The fact there will almost inevitably be Class Members who do not engage with the process does not result in an opt-in process, nor does it thwart the objective of the class action regime in promoting access to justice,” the judge’s statement reads. “The Class Member remains part of the class and could, if they so wish, take steps to opt out. They remain unengaged at their own risk.”

The proposed class was defined as including all Canadian residents or citizens who are authors of photographs collected by Clearview AI and who have not assigned or licensed their copyrights, as well as individuals or entities to whom those copyrights had been assigned or licensed. This means anyone whose face biometrics ended up in Clearview’s database could be eligible. A previous court decision deemed this class definition too vague, but the appeal argued that the certification judge was wrong in finding that a query-based process would turn opt-out into opt-in.

Meanwhile, in the UK, Clearview is fighting the reinstatement of a fine of 7.5 million pounds (US$10 million), arguing that its operations as a “data controller” fall outside the scope of the UK GDPR, as it does not monitor user behavior. A report from MLex indicates that Clearview has attacked the UK data privacy regulator’s court arguments, calling the Information Commissioner’s Office (ICO)’s legal foundation for an appeal on its suspension “completely unprincipled.” A previous legal decision had annulled the proposed fine, but judges in the current case appear unconvinced that Clearview falls outside the scope of the regulation.

Clearview has a history of regulatory violations and legal troubles, with fines levied in multiple countries, including Italy, Greece, France, and the Netherlands. Despite these challenges, the company continues to fight, offering a fresh face for every new uppercut. The firm has proposed a “new direction” that reportedly involves pursuing contracts with the Trump administration, but whether this will be enough to turn the tide remains to be seen. 

Frequently Asked Questions (FAQS): 

Q: What is Clearview AI?

A: Clearview AI is a facial recognition technology company that has been involved in numerous legal and regulatory disputes over its data collection and privacy practices.

Q: Why is Clearview AI facing a class action in Canada?

A: Clearview AI is facing a revived class action in Canada due to allegations of privacy violations and the collection of face biometrics without proper consent.

Q: What is the legal issue in the UK regarding Clearview AI?

A: Clearview AI is fighting the reinstatement of a 7.5 million pound fine in the UK, arguing that its operations fall outside the scope of the UK GDPR.

Q: What is the significance of the opt-out process in Canadian class actions?

A: In Canadian class actions, most members are automatically included and must opt out if they do not wish to participate. Clearview argued that a query-based process would make it opt-in, but this was rejected by the court.

Q: What are some other countries where Clearview AI has faced legal challenges?

A: Clearview AI has faced legal challenges in Italy, Greece, France, and the Netherlands, among other countries, over its data collection and privacy practices. 

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