Meta Reaches $1.4 Billion Settlement with Texas Over Facial Recognition Software and Privacy Violations
On Tuesday (July 30), Meta, formerly known as Facebook, reached a $1.4 billion settlement with the state of Texas in a significant privacy lawsuit. The case centered on allegations that the tech giant collected and used biometric data from its users without proper consent, a violation of Texas state laws.
The lawsuit, filed in 2022, alleged that Meta's practices violated a 2009 Texas statute that prohibits capturing or selling a resident's biometric information, such as facial recognition data, without their knowledge or permission. When the tech company’s “tag” feature was originally introduced in 2011, the social media platform automatically enabled facial recognition software without adequately informing users or obtaining their explicit consent. Texas Attorney General Ken Paxton argued that this constituted a violation of the state’s biometric data law and the Texas Deceptive Trade Practices Act (DTPA).
Biometric data laws are designed to protect individuals' sensitive information, such as fingerprints, facial recognition data, and other unique biological markers. Under these laws, companies are required to obtain explicit consent before collecting, storing, or using such data. Meta's failure to comply with these requirements resulted in the massive legal settlement.
In response to the growing concerns over the misuse of biometric data, Meta announced in 2021 that it would cease the operations of its facial recognition system and delete the faceprints of over a billion individuals.
Paxton emphasized the importance of holding large technology companies liable for violating privacy rights, stating, "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."
The settlement with Texas stipulates that the $1.4 billion will be paid out over five years.
