Meta settles Texas biometric privacy lawsuit for $1.4 billion

AUSTIN, Texas (CN) — Texas Attorney General Ken Paxton announced Tuesday that Meta, the parent company of Facebook, agreed to settle a privacy rights lawsuit filed by the state for $1.4 billion.

The state claimed in its original complaint, filed in state court in Febuary 2022, that the social media juggernaut violated the privacy rights of Texas by collecting biometric data that was used to train facial-recognition technology. Collection of such data for commercial use and without users' informed consent is unlawful in the state under the Texas Capture or Use of Biometric Identifier Act.

“This historic settlement demonstrates our 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. “Any abuse of Texans’ sensitive data will be met with the full force of the law.”

In its own statement, Meta said that the company was pleased to resolve the lawsuit and looks forward to making continued investments in Texas. As part of the settlement, the company will pay the $1.4 billion over the course of five years.    

This case was the first to be brought under the state’s law protecting such data. While this settlement is historic for its staggering amount, it is not the first time Meta has been taken to court for its handling of personal information. Facebook users in Illinois sued the company for violating their state’s law prohibiting the use of biometric data without permission, resulting in a $650 million settlement in 2021.

Facebook began using facial recognition software in 2011. The site would automatically recognize faces and recommend users “tag” them in photos. However, privacy concerns came to a head in 2021 when, shortly after Facebook rebranded to Meta, the company announced that it would cease using the software and delete the faceprints of over 1 billion people. 

In addition to Facebook, Meta owns and operates Instagram, the third most popular social media platform and WhatsApp, an instant messaging app used by 29% of U.S. adults, according to the Pew Research Center. Meta remains one of the world's largest companies. It is worth over $1 trillion, placing it amongst the likes of Apple, Microsoft and Alphabet.

Tuesday’s announcement comes as the state remains embroiled in a similar lawsuit against Google. In October 2022, the state accused the search engine site of collecting users' voiceprints and facial geometry with its products Google Photos, Google Assistant and Nest Hub Max.

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