Meta, formerly known as Facebook, has agreed to pay $1.4 billion to the state of Texas in a historic settlement over allegations of unlawfully using biometric data. This landmark agreement, announced by Texas Attorney General Ken Paxton, marks the largest settlement ever obtained from a single state's action against a technology company.
The Lawsuit and Settlement
The lawsuit, filed in February 2022, accused Meta of violating Texas law by capturing the biometric data of millions of Texans without their informed consent. The specific feature at the center of the lawsuit was "Tag Suggestions," introduced in 2011. This feature, which automatically tagged individuals in photos uploaded to Facebook, utilized facial recognition software to capture and analyze facial geometry.
“After vigorously pursuing justice for our citizens whose privacy rights were violated by Meta’s use of facial recognition software, I’m proud to announce that we have reached the largest settlement ever obtained from an action brought by a single State,” said Paxton in a statement. “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. Any abuse of Texans’ sensitive data will be met with the full force of the law.”
Legal and Privacy Implications
The $1.4 billion settlement is the largest privacy settlement ever achieved by an attorney general, significantly surpassing the $390 million settlement a coalition of 40 states reached with Google in late 2022. It is also the first lawsuit and settlement under Texas's “Capture or Use of Biometric Identifier” (CUBI) law, enacted in 2009 to regulate the commercial use of biometric data.
"Meta automatically turned this feature on for all Texans without explaining how the feature worked," according to Paxton's office. "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, capturing records of the facial geometry of the people depicted."
The CUBI law prohibits companies from capturing biometric identifiers, such as facial geometry, without first informing the individual and obtaining their consent. Meta's actions, as described in the lawsuit, clearly violated this requirement.
Meta's Response and Future Commitments
In response to the settlement, a Meta spokesperson stated, "We are pleased to resolve this matter, and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers."
The settlement amount will be paid to Texas over a period of five years. This agreement underscores the importance of stringent privacy laws and the need for technology companies to adhere to them. It also sets a precedent for how states can hold major corporations accountable for privacy violations.
Broader Impact and Related Lawsuits
Meta is not the only company facing scrutiny over biometric data use. Amazon, Target, and Snapchat have also been sued for similar issues. Additionally, Meta is involved in other high-profile legal battles, including a $725 million settlement over allegations that it allowed user data to be accessed by third parties without consent. Moreover, a federal lawsuit involving more than 40 states claims that Meta's social media platforms, including Facebook and Instagram, negatively impact young people's mental health through addictive algorithms.
The Department of Homeland Security defines biometrics as "unique physical characteristics, such as fingerprints, that can be used for automated recognition." While these data can enhance user experiences by personalizing services, they also pose significant privacy risks if misused.
Conclusion
The $1.4 billion settlement between Meta and Texas represents a significant victory for privacy advocates and sets a new benchmark for state-level enforcement of biometric data laws. As technology continues to evolve, ensuring the protection of personal data remains a critical concern. This historic settlement sends a clear message that violations of privacy rights will not be tolerated and that tech giants must prioritize the lawful and ethical use of biometric data.
Sources:
