In a significant development for digital privacy rights, Meta Platforms has reached a $1.4 billion settlement with Texas, resolving allegations of unauthorized biometric data collection. This agreement, announced on July 30, 2024, marks the largest settlement by a single state in a biometric privacy case.
The lawsuit, filed in 2022, accused Meta, the parent company of Facebook, of violating Texas' 2009 biometric privacy law. The social media giant allegedly collected biometric information from millions of Texans without their consent through its now-discontinued "Tag Suggestions" feature.
Ken Paxton, Texas Attorney General since 2015, stated that the settlement demonstrates the state's commitment to holding major technology companies accountable for privacy violations. The case highlights the growing scrutiny of tech giants' data practices and the increasing importance of biometric privacy laws.
While Meta has agreed to the settlement, the company continues to deny any wrongdoing. A spokesperson expressed the company's satisfaction in resolving the matter and hinted at potential future investments in Texas, including data center development.
This settlement surpasses Meta's previous $650 million agreement in 2020, which resolved a similar class-action lawsuit in Illinois under that state's stringent biometric privacy law. The Texas case, brought under a law enacted in 2009, allows for damages of up to $25,000 per violation.
"We are pleased to resolve this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers."
The facial recognition technology at the center of this case is part of a rapidly growing industry, with the global market valued at $3.8 billion in 2020. This technology, which maps unique facial features, has raised significant privacy concerns since its development in the 1960s.
Meta, founded as Facebook in 2004 by Mark Zuckerberg, has faced numerous privacy-related challenges. With over 2.9 billion monthly active users as of 2023 and annual revenue of approximately $116.61 billion in the same year, the company's data practices have far-reaching implications.
The Texas settlement underscores the evolving landscape of digital privacy and the potential consequences for tech companies that fail to prioritize user consent in data collection. As biometric data becomes increasingly valuable, other states may follow Texas' lead in enforcing strict privacy regulations.
Meanwhile, Alphabet's Google faces a similar lawsuit in Texas, indicating that the scrutiny of tech giants' biometric data practices is likely to continue. This trend reflects a growing awareness of the importance of protecting personal information in the digital age.