Meta Platforms has reached a settlement with the state of Texas to resolve a lawsuit accusing the company of illegally using facial recognition technology to collect biometric data from Texans without their consent. The tech giant has agreed to pay a staggering $1.4 billion over five years, marking the largest settlement ever recovered in a single-state lawsuit.
The parties announced that they reached the settlement in May, just weeks before the trial was set to begin. This resolution comes after a lengthy legal battle that began in 2022 when Texas Attorney General Ken Paxton filed a lawsuit in state court against Meta.
The Allegations and Legal Background
The lawsuit alleged that Meta, through its Facebook platform, used facial recognition software in uploaded photos without obtaining proper consent from Texans. The attorney general’s office claimed that Facebook had downloaded and stored billions of biometric identifiers without customers’ consent after introducing Tag Suggestions in 2011. This feature automatically recognizes friends’ faces in a user’s photos.
Meta’s actions reportedly violated the Texas Capture or Use of Biometric Identifiers Act (CUBI), which prohibits companies from collecting biometric identifiers from Texans without notice and consent. The company continued these practices despite being aware of the legal restrictions in place.
In late 2021, Meta announced it was shutting down its facial recognition system on Facebook, citing “growing concerns about the use of this technology in general.” This move came as the company faced increasing scrutiny over its data collection practices.
Reactions and Future Implications
Texas Attorney General Ken Paxton hailed the settlement as a significant victory, stating, “This historic settlement demonstrates our commitment to confronting the world’s largest tech companies and holding them accountable for breaking the law and violating the privacy rights of Texans.”
In response to the settlement, a Meta representative told CNBC, “We are pleased to resolve this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including potential data center development.”
The outcome of this case may have far-reaching implications for how tech companies handle biometric data and user privacy in the future, notes NIX Solutions. As the largest settlement of its kind, it sets a precedent for other states that may be considering similar legal action against tech giants.
We’ll keep you updated on any developments regarding Meta’s compliance with the settlement terms and potential changes to their data collection practices. The impact of this case on the broader tech industry and privacy regulations remains to be seen, but it undoubtedly marks a significant moment in the ongoing debate over digital privacy and corporate responsibility.