Meta Agrees to $1.4B Settlement with Texas Over Facial Recognition Violations

Texas Settles Landmark Lawsuit with Meta Over Facial Recognition

In a groundbreaking legal development, Texas has reached a substantial settlement with Meta (formerly Facebook) concerning the controversial use of facial recognition technology on the platform. This settlement arises from a lawsuit initiated in 2022, which alleged that Meta's "Tag Suggestions" feature violated the state’s Capture or Use of Biometric Identifier (CUBI) Act, as well as the Texas Deceptive Trade Practices Act.

Details of the Settlement

The settlement, announced by Texas Attorney General Ken Paxton's office, mandates that Meta pay a staggering $1.4 billion over the next five years. This figure marks the largest settlement ever resulting from a legal action initiated by a single state. Attorney General Paxton emphasized the significance of this case as the first lawsuit and settlement under the CUBI Act, and highlighted its potential implications for other companies facing similar privacy-related allegations.

Implications of the Case

Paxton stated, "Any abuse of Texans’ sensitive data will be met with the full force of the law," reinforcing Texas' commitment to safeguarding citizens' privacy rights.

Background on the Allegations

At the heart of the lawsuit is Meta's automatic activation of the Tag Suggestions feature, launched in 2011. This feature was intended to enhance user engagement by suggesting tags for people appearing in uploaded photos. However, this practice was implemented just two years after Texas passed the CUBI Act, which explicitly prohibits companies from capturing biometric data without obtaining prior informed consent.

The Attorney General's office asserted that Meta had purportedly captured and utilized the biometric data of millions of Texans without the required authorization. The original lawsuit sought civil penalties that could have reached up to hundreds of billions of dollars, given the number of violations alleged.

Meta's Response and Future Plans

While Meta did not admit to any wrongdoing as part of the settlement, it has made changes to its facial recognition settings over the years. In 2017, the company introduced an "on/off" control for tag suggestions, which evolved into broader facial recognition settings in 2019. Ultimately, Meta ceased automated facial tagging altogether in 2021.

In his statement following the settlement, Meta spokesperson Christopher Sgro expressed the company's relief in resolving the matter and hinted at future initiatives, saying, "We look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers."

Conclusion

This monumental settlement not only highlights the growing scrutiny companies face regarding consumer privacy and biometric data but also serves as a precedent for other states to follow. As privacy laws continue to evolve, this case emphasizes the necessity for companies to obtain explicit consent for the use of biometric technologies.

For additional insights into how privacy laws impact technology companies, visit this related article.

Meta and the Future of Facial Recognition

As we look ahead, the future of facial recognition technology in social media and other platforms remains uncertain. With ongoing debates about privacy, consent, and data security, companies like Meta must navigate these challenges carefully to stay compliant with emerging regulations.