Meta, the umbrella corporation of Facebook, Instagram, and WhatsApp, reached a groundbreaking settlement of $1.4 billion with the Texan government over accusations of illicitly gathering biometric information from millions of individuals without their consent. This marks one of the most significant fines imposed by authorities against the technology behemoth.
“By attaining this landmark settlement, we reaffirm our stance against the largest technology firms globally, ensuring they are answerable for violating regulations and encroaching upon the privacy rights of Texans,” Attorney General Ken Paxton stated. “Any unauthorized use of Texans’ sensitive data will face strict repercussions.”
The resolution came after more than twenty-four months, following the legal action brought against the social media titan for allegedly collecting facial data of Texas residents without obtaining their informed consent as mandated by the law. Despite this, the firm headquartered in Menlo Park did not acknowledge any misconduct.
Originally known as Tag Suggestions upon its launch in 2010, the feature aimed to facilitate users in effortlessly labeling images shared on Facebook with the names of individuals present in them. However, it was automatically activated without sufficient clarification on its functioning.
The lawsuit alleged that Meta violated Texas’ Capture or Utilization of Biometric Identifier (CUBI) Act and the Deceptive Trade Practices Act.
“Without the knowledge of most Texans, Meta operated facial recognition software on nearly every face depicted in photos uploaded to Facebook for over a decade, compiling data on the facial structure of those individuals,” a press release from the Attorney General’s office revealed.
“Meta pursued this approach despite being aware that CUBI prohibits companies from collecting the biometric identifiers of Texans, including facial structure data, without first informing the individual and receiving their consent to gather such information.”
In November 2021, Meta announced its decision to discontinue the “Face Recognition” system entirely and erase a vast repository of facial recognition templates of over a billion users, as part of a broader effort to restrict the usage of such technology across its products.
During that same period, the company settled a $650 million lawsuit in Illinois from 2015 under the Biometric Information Privacy Act (BIPA) which involved akin accusations related to its facial recognition features.
Meta is not the sole entity under scrutiny in Texas with regards to biometric data collection. The state also lodged a lawsuit against Google in October 2022 for allegedly flouting the same biometric privacy statute by amassing voice and facial data through services like Google Photos, Google Assistant, and Nest Hub Max. The lawsuit is presently ongoing.
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