The article “Meta to pay $1.4 billion to Texas for using facial recognition technology without users’ permission” was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs and engages Texans on public policy, politics, government and statewide issues.
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Facebook’s parent company Meta will pay $1.4 billion to the state of Texas to settle a lawsuit that alleged the company used users’ biometric data without their permission.
The 2022 lawsuit filed in state court by Texas Attorney General Ken Paxton alleged that Mehta used facial recognition software on photos uploaded to Facebook without the consent of Texans. Attorney General Paxton announced the settlement on Tuesday.
Paxton’s office said this is the largest settlement ever won by a single state and the largest privacy settlement ever won by a state attorney general. The settlement will be paid out over five years.
“This historic settlement demonstrates our commitment to standing up to the world’s largest technology companies and holding them accountable for violating the law and violating the privacy rights of Texans. Any misuse of Texans’ sensitive data will be met with the force of the law,” Paxton said in a statement.
This was the first case Paxton’s office has argued under a 2009 state law that protects Texans’ biometric data, such as fingerprints and facial scans. The law requires companies to inform individuals and get their consent before collecting such data. It also limits the sharing of such data except in certain cases, such as assisting law enforcement or completing financial transactions. Companies must protect such data and destroy it within a year after it is no longer needed.
In 2011, Meta introduced a feature called “tag suggestions” to help users tag people in their photos. The feature was on by default and performed facial recognition on users’ photos, automatically capturing data protected by a 2009 law, according to Paxton’s office. The system was phased out in 2021, and Meta says it has deleted facial recognition data for more than 1 billion individuals.
As part of the settlement, Meta must notify the Attorney General’s office of any proposed or ongoing activities that may violate the state’s biometric data law, and if Texas objects, the parties must try to resolve the issue within 60 days.
Meta officials said the settlement will make it easier for the company to discuss the impact and requirements of state biometric data laws with attorneys general’s offices, adding that data protection and privacy are a top priority for the company.
“We are pleased to have resolved this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including data center development,” a Meta spokesman said Tuesday.
Mehta is expected to pay the state its first installment of $500 million in about a month, followed by annual installments of $225 million each from 2025 through 2028.
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Correction, July 30, 2024, 12:03 PM:
An earlier version of this story said the Texas Attorney General’s office announced the settlement on Monday, when it actually happened on Tuesday.
This article originally appeared in The Texas Tribune: https://www.texastribune.org/2024/07/30/texas-meta-facebook-biometric-data-settlement/.
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