Meta Strikes $1.4 Billion Deal with Texas Over Biometric Data Suit

Meta Platforms, the parent company of Facebook, has reached a settlement agreement to pay $1.4 billion to the state of Texas, resolving a lawsuit accusing the company of using facial-recognition technology to collect biometric data of millions of Texans without their consent. According to Reuters, this settlement is the largest ever achieved by a single state in such a case.

The terms of the settlement were disclosed on Tuesday and highlight the significant legal ramifications for Meta. The legal team representing Texas included the plaintiffs firm Keller Postman. The lawsuit, which was filed in 2022, was the first major case brought under Texas’ 2009 biometric privacy law. This law allows for damages of up to $25,000 per violation.

Texas alleged that Facebook captured biometric information “billions of times” from photos and videos uploaded by users. This was part of a now-discontinued feature called “Tag Suggestions.” A Meta spokesperson stated that the company is pleased to resolve the matter and is looking forward to future business investments in Texas, including the potential development of data centers. Despite agreeing to the settlement, Meta has denied any wrongdoing.

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Texas Attorney General Ken Paxton remarked that the settlement demonstrates the state’s commitment to holding major technology companies accountable for violating privacy laws. “This settlement marks the state’s 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 said in a statement. Texas and Meta reached the agreement in May, just weeks before a trial in state court was scheduled to begin.

This isn’t the first time Meta has faced legal challenges over its biometric practices. In 2020, the company agreed to pay $650 million to settle a class-action lawsuit under Illinois’ biometric privacy law, which is one of the nation’s most stringent. Meta also denied any wrongdoing in that case.

Meanwhile, Alphabet’s Google is currently fighting a similar lawsuit filed by Texas, which accuses the company of violating the state’s biometric privacy law. This ongoing litigation underscores the increasing scrutiny that tech giants are facing over their handling of biometric data.

Source: Reuters