Meta Settles Texas Facial Recognition Suit for $1.4B, a Record
Published Date: 31/07/2024
Meta has agreed to a $1.4 billion settlement with Texas in a landmark privacy lawsuit, marking the largest state governmental privacy settlement in history.
"In a major victory for privacy advocates, Meta has agreed to a $1.4 billion settlement with Texas to resolve a lawsuit alleging that the tech giant used biometric data of users without their permission. The settlement, announced by Texas Attorney General Ken Paxton, is the largest secured by a single state and marks a significant milestone in the fight against privacy violations.
The lawsuit, filed in 2022, accused Meta of violating a Texas state law that prohibits capturing or selling a resident's biometric information, such as their face or fingerprint, without their consent. This law is designed to protect citizens from the misuse of their personal data, and Meta's alleged violation of this law has sparked widespread concern.
According to Paxton, this historic settlement demonstrates the state's commitment to holding technology companies accountable for breaking the law and violating Texans' privacy rights. The settlement is a significant blow to Meta, which has faced repeated scrutiny over its handling of user data.
Meta has faced similar allegations in the past, including a $650 million settlement with Illinois in 2021 over similar allegations of biometric privacy violations. In total, the company has now paid over $2 billion in settlements for biometric privacy claims, according to Chicago-based class action attorney Jay Edelson.
In response to growing concerns about facial recognition technology, Meta announced in 2021 that it was shutting down its face-recognition system and deleting the faceprints of more than 1 billion people. This decision was seen as a major victory for privacy advocates, who have long warned about the potential misuse of this technology by governments, police, and other organizations.
The fallout from this lawsuit serves as a warning to other technology companies that they must take user privacy seriously and comply with state laws. As Edelson noted, this settlement is a huge signal to other companies that they should be extremely careful if they want to trade in individuals' biometric information.
In related news, Texas has also filed a similar lawsuit against Google, alleging that the search giant collected millions of biometric identifiers, including voiceprints and records of face geometry, through its products and services. This lawsuit is still pending, and its outcome could have significant implications for the tech industry.
Despite this significant settlement, Meta's business is unlikely to be heavily impacted. The company reported a profit of $12.37 billion in the first three months of this year, with revenue of $36.46 billion, a 27% increase from the previous year.
  InformationÂ
Meta, formerly known as Facebook, is a multinational technology company headquartered in Menlo Park, California. The company operates several popular social media platforms, including Facebook, Instagram, and WhatsApp.
The Texas Attorney General's office is responsible for enforcing state laws and protecting the rights of Texas citizens. Attorney General Ken Paxton has been a vocal advocate for consumer protection and privacy rights.
FAQs:
QÂ How much did Meta agree to pay in the settlement with Texas?
AÂ Meta agreed to pay $1.4 billion in the settlement with Texas.
QÂ What was the basis for the lawsuit against Meta?
AÂ The lawsuit accused Meta of violating a Texas state law that prohibits capturing or selling a resident's biometric information, such as their face or fingerprint, without their consent.
QÂ How does this settlement compare to other privacy settlements?
AÂ This settlement is the largest secured by a single state and marks the largest state governmental privacy settlement in history.
QÂ What other companies have faced similar allegations?
AÂ Google is also facing a similar lawsuit in Texas, alleging that the search giant collected millions of biometric identifiers, including voiceprints and records of face geometry, through its products and services.
QÂ What is the impact of this settlement on Meta's business?
AÂ The settlement is unlikely to make a significant dent in Meta's business, as the company reported a profit of $12.37 billion in the first three months of this year."
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