Clearview AI Encounters New Legal Hurdles in Canada and UK

Published Date : 7/19/2025 

Clearview AI, a controversial facial recognition firm, is facing a revived class action in Canada and a reinstated fine in the UK, adding to its ongoing legal battles. 

Clearview AI, a prominent facial recognition company, has been facing a series of legal and regulatory challenges. The firm has already had a tumultuous year, marked by the ousting of its founder and CEO, Hoan Ton That, in April. In May, Clearview finally settled a long-standing biometric data privacy lawsuit in the U.S., which granted plaintiffs a 23 percent equity stake in the company, estimated to be worth around $51.75 million. Despite these setbacks, Clearview continues to face further litigation in the U.S. and abroad.

A new blow comes from Canada, where the Federal Court of Appeal has revived a proposed class action against Clearview AI. This action, which was initially filed in 2020, centers on the firm's operations in Canada from 2019 to July 2020, during which it provided facial recognition services to the Royal Canadian Mounted Police (RCMP). The firm suspended its services in the country following the filing of the class action and critical recommendations from the Office of the Privacy Commissioner regarding potential privacy violations.

Five years later, on July 16, Justice Elizabeth Walker rejected Clearview’s legal arguments against the class action. The firm argued that the query-based class identification process, which requires potential class members to query the company to confirm their inclusion, undermines the opt-out nature of Canadian class actions. However, Justice Walker’s ruling clarified that the opt-out scheme remains intact, stating, “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 proposed class was defined as including all Canadian residents or citizens whose photographs were collected by Clearview AI and who have not assigned or licensed their copyrights. This broad definition means that anyone whose face biometrics ended up in Clearview’s database could be eligible for the class action. Despite previous court decisions deeming this definition too vague, Justice Walker’s ruling now supports the query-based process as a valid method for identifying class members.

As Clearview battles the Canadian legal system, it is also facing significant challenges in the UK. The firm is currently fighting the reinstatement of a £7.5 million (US$10 million) fine, arguing that its operations as a “data controller” fall outside the scope of the UK GDPR. In court, Clearview has criticized the Information Commissioner’s Office (ICO) for what it calls a “completely unprincipled” legal foundation for the appeal. A previous legal decision had annulled the fine, but the current judges appear unconvinced by Clearview’s arguments.

Clearview’s legal troubles are not limited to Canada and the UK. The company has faced fines and regulatory actions in several other countries, including Italy, Greece, France, and the Netherlands. These fines, which collectively amount to millions of euros, highlight the firm’s ongoing issues with compliance and data privacy. Despite these challenges, Clearview continues to pursue new opportunities, including contracts with the Trump administration, as part of its new direction.

The ongoing legal battles and regulatory challenges faced by Clearview AI underscore the company’s struggle to operate within the increasingly stringent data privacy laws. Whether these challenges will ultimately lead to significant changes in the company’s operations remains to be seen. However, the legal and regulatory landscape for facial recognition technology is becoming more complex, and Clearview AI is at the forefront of this evolving debate. 

Frequently Asked Questions (FAQS): 

Q: What is Clearview AI?

A: Clearview AI is a facial recognition company that has been involved in numerous legal and regulatory battles over data privacy concerns.

Q: What recent legal challenge is Clearview AI facing in Canada?

A: The Federal Court of Appeal in Canada has revived a proposed class action against Clearview AI, which was initially filed in 2020, over potential privacy violations.

Q: What is the UK fine that Clearview AI is fighting to avoid?

A: Clearview AI is fighting the reinstatement of a £7.5 million (US$10 million) fine imposed by the UK Information Commissioner’s Office (ICO) for alleged GDPR violations.

Q: Why is the query-based class identification process important in the Canadian class action?

A: The query-based class identification process allows potential class members to confirm their inclusion in the class action, which Clearview AI argued undermined the opt-out nature of Canadian class actions. However, the court ruled that this process does not change the opt-out scheme.

Q: What other countries have fined Clearview AI for data privacy violations?

A: Clearview AI has faced fines and regulatory actions in several countries, including Italy, Greece, France, and the Netherlands, for various data privacy violations. 

More Related Topics :