Meta has consented to a $1.4bn settlement with Texas, marking the largest settlement secured by a single state for privacy violations.
According to Security Week, the lawsuit accused Meta of unlawfully using biometric data from Texan users without their consent, specifically capturing facial and fingerprint data. Texas Attorney General Ken Paxton highlighted the settlement as a significant victory against major technology firms that disregard privacy laws and citizens’ rights.
Meta’s response to the settlement was notably conciliatory, expressing satisfaction with the resolution and a keen interest in further expanding its business operations within Texas, including potential plans for new data centers. “We are pleased to resolve this matter, and look forward to exploring future opportunities to deepen our business investments in Texas,” Meta stated.
This lawsuit, filed in 2022, is part of a broader scrutiny of Meta’s practices concerning biometric data, with the company having faced multiple lawsuits over similar issues. Notably, in 2021, a judge approved a $650m settlement in Illinois over comparable allegations. According to Chicago-based class action attorney Jay Edelson, these settlements signify a severe warning to other companies about the legal perils of mishandling biometric data. “That is a huge signal to other companies that they should be extremely careful if they want to trade in individuals’ biometric information,” Edelson said.
Meta has made efforts to address public concerns by discontinuing its facial recognition system in 2021 and deleting the faceprints of over a billion users. This decision followed increased scrutiny over the potential misuse of the technology by various entities, including governments and law enforcement.
Despite the sizeable financial implication of the settlement, it is unlikely to significantly impact Meta’s financial health. The company recently reported a substantial profit of $12.37bn in the first quarter of the year, with revenues up by 27% from the previous year, totaling $36.46bn. Meta is expected to unveil its second-quarter earnings soon, which are anticipated to reflect continued financial robustness.
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