Meta has agreed to a $1.4 billion settlement with Texas over allegations of improperly using biometric data, such as facial recognition, without user consent.
This landmark settlement addresses accusations that the tech giant, formerly known as Facebook, violated state laws by capturing and storing biometric information, including faceprints, without obtaining explicit permission from users.
Meta Agrees to $1.4 Billion Settlement
Meta has agreed to a $1.4 billion settlement with Texas over allegations of improper use of biometric data. The tech giant faced accusations of using users’ biometric information without permission.
Largest Settlement by a Single State
Texas Attorney General Ken Paxton highlighted the settlement as the largest ever secured by a single state. This follows a $650 million settlement in Illinois in 2021 over similar allegations.
Commitment to Privacy Rights
Paxton emphasized the state’s commitment to holding tech companies accountable for privacy violations. He stated that this settlement underscores the importance of protecting Texans’ privacy rights.
Meta’s Future Plans in Texas
Meta expressed satisfaction with the resolution and hinted at future business investments in Texas. The company is considering developing data centers in the state.
Violation of State Law
The 2022 lawsuit accused Meta of violating Texas law by capturing biometric data without consent. The law prohibits the unauthorized collection and sale of biometric information like face or fingerprint data.
Historic Privacy Settlement
Chicago-based attorney Jay Edelson called it the biggest state privacy settlement ever. Edelson’s firm had previously secured a $650 million settlement with Meta.
Over $2 Billion in Settlements
Meta has now paid over $2 billion in biometric privacy settlements. This significant amount signals to other companies the risks of trading in biometric data without proper safeguards.
Shutting Down Face-Recognition System
In 2021, Meta announced the shutdown of its face-recognition system. The company planned to delete the faceprints of over a billion people due to growing concerns about misuse.
User Participation and Opt-Out
More than a third of Facebook’s daily users had opted into the facial recognition system. Introduced over a decade ago, the feature gradually became easier to opt out of due to increasing regulatory scrutiny.
Changes in Facial Recognition Policy
In 2019, Facebook stopped automatically recognizing people in photos and suggesting tags. Instead, users were given the option to choose whether they wanted to use the facial recognition feature.
Texas Lawsuit Against Google
In 2022, Texas filed a similar lawsuit against Google. The lawsuit alleges that Google collected millions of biometric identifiers through products like Google Photos, Google Assistant, and Nest Hub Max.
Impact on Meta’s Finances
The $1.4 billion settlement is unlikely to significantly impact Meta’s finances. The company reported a profit of $12.37 billion in the first quarter of this year, with a revenue of $36.46 billion, up 27% from the previous year.
Meta’s Stock Performance
Meta’s stock saw a slight decline on Tuesday, slipping $4.06 to $461.65. This represents a decline of less than 1% ahead of the company’s second-quarter earnings report.
