Meta Platforms, the parent company of Facebook, has agreed to a $1.4 billion settlement with the state of Texas. The settlement resolves a lawsuit accusing Meta of illegally using facial recognition technology to collect biometric data from millions of Texans without their consent. This settlement is the largest financial resolution ever paid by a single state.
What Was the 2022 Lawsuit About?
The lawsuit, filed in 2022, was the first major case under Texas’s 2009 Capture or Use of Biometric Identifier Act. Texas alleged that Meta violated this law billions of times by capturing biometric information from photos and videos uploaded to Facebook. This data collection was part of the platform’s now-discontinued “Tag Suggestions” feature, which automatically tagged users in photos.
The state law provides for penalties of up to $25,000 per violation. Additionally, Texas claimed potential violations under the Texas Deceptive Trade Practices Act, which could impose an extra $10,000 per violation. The latter act targets false, misleading, or deceptive business practices.
The settlement avoids the full extent of these potential financial penalties, which could have been as high as $35,000 per violation.
Meta’s Response and Official Reactions
A Meta spokesperson expressed satisfaction with the settlement, noting that the company is exploring future opportunities for business investments in Texas, including developing data centers.
Despite settling the case, Meta maintains that it did not engage in any wrongdoing. The company has since discontinued its automated facial recognition system.
Texas Attorney General Ken Paxton celebrated the settlement, emphasizing the state’s commitment to holding large technology companies accountable for legal and privacy violations. Paxton remarked that the settlement underscores Texas’s dedication to protecting the privacy rights of its residents.
Previous and Ongoing Legal Challenges
The settlement between Texas and Meta was reached in May, weeks before a state court trial was set to begin. This case is not Meta’s first encounter with legal issues surrounding biometric data collection.
In 2020, Meta paid $650 million to settle a class action lawsuit in Illinois, which also alleged that the company violated privacy laws by collecting biometric data without explicit user consent. As in the Texas case, Meta denied any wrongdoing in the Illinois settlement.
The issue of biometric data collection is not limited to Meta. Alphabet Inc.’s Google is also facing a lawsuit from Texas accusing the company of violating the state’s biometric privacy laws.
Featured Image courtesy of David Paul Morris/Bloomberg via Getty Images
Follow us for more tech news updates.