Texas to Receive $1.4B Settlement From Meta Biometric Data Lawsuit

In a landmark case, Meta, the parent company of Facebook, agreed to pay $1.4 billion to settle a lawsuit brought by the state of Texas. The Meta biometric data lawsuit, filed by Texas Attorney General Ken Paxton in February 2022, accused Meta of illegally collecting and using the biometric data of millions of Texas residents without obtaining the required consent.

Meta Illegally Ran Facial Recognition Software for More Than 10 Years

The controversy began with a feature called “Tag Suggestions,” introduced by Facebook in 2011. This feature used facial recognition technology to identify people in photos and suggest tags. However, it also captured and stored biometric data—specifically, records of facial geometry—without informing users or obtaining their consent. This practice violated Texas' Capture or Use of Biometric Identifier Act, which mandates that companies must notify individuals and receive permission before collecting biometric identifiers.

“Unbeknownst to most Texans, for more than a decade Meta ran facial recognition software on virtually every face contained in the photographs uploaded to Facebook,” Paxton's office stated. Despite knowing the legal requirements, Meta continued to operate its facial recognition system until it announced its shutdown in late 2021, citing “growing concerns about the use of this technology.”

$1.4 Billion Settlement Over Five Years

The legal settlement, filed in Texas state district court in Harrison County, stands as the largest ever obtained by a single state in a biometric data case. The Meta biometric data lawsuit will see Meta paying the $1.4 billion over five years. Attorney General Paxton hailed the settlement as a victory for Texan privacy rights and a clear message to technology companies about the consequences of violating state laws. “This historic settlement demonstrates our commitment to standing up to the world's biggest technology companies and holding them accountable for breaking the law and violating Texans' privacy rights,” Paxton stated. “Any abuse of Texans' sensitive data will be met with the full force of the law.”

Meta, in a statement to CNBC, expressed satisfaction with the resolution of the Meta biometric data lawsuit and hinted at future business investments in Texas, including potential data center developments. The settlement was reached nearly two months ago, just before a scheduled trial in June, but was only announced recently. The law firms McKool Smith and Keller Postman, representing Texas, requested a pause in proceedings to finalize the settlement details.

Texas Now Targeting Google for Similar Offenses

Despite this settlement, Paxton's office continues to pursue a similar lawsuit against Alphabet, the parent company of Google, alleging the illegal collection of biometric data from millions of Texans. This ongoing litigation underscores the broader issue of how technology companies handle user data and the importance of regulatory oversight. The Meta biometric data lawsuit marks a significant moment in the ongoing battle for digital privacy. It highlights the need for robust legal frameworks to protect citizens from unauthorized data collection and use. As technology advances and becomes more integrated into daily life, ensuring the protection of personal information remains a crucial priority.

For Texas residents, the Meta biometric data lawsuit settlement not only offers financial redress but also serves as a powerful reminder of the state's commitment to safeguarding their privacy. It sets a precedent for other states to follow and sends a clear message to technology companies about the importance of compliance with privacy laws.

Historic Win for Texas Privacy Rights

As the digital landscape evolves, so too must the legal measures that protect individuals from misuse of their personal information. The Meta biometric data lawsuit and the ongoing lawsuit against Alphabet illustrate the critical role of state attorneys general in upholding these protections. By taking a firm stand against unlawful data practices, Texas is leading the way in ensuring that technological progress does not come at the expense of individual privacy.

The $1.4 billion settlement with Meta is a historic win for Texan privacy rights and a testament to the state's resolve to hold powerful technology companies accountable. The Meta biometric data lawsuit is a crucial step towards a future where digital privacy is respected and protected.

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