The 2022 lawsuit, filed by Texas Attorney General Ken Paxton in state court, alleged that Meta had been using facial recognition software on photos uploaded to Facebook without Texans’ consent. Paxton announced the settlement on Tuesday.
Paxton’s office said this is the largest settlement ever obtained by a single state, and the largest settlement related to privacy a state attorney general has ever secured. The settlement will be paid over five years.
“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. Any abuse of Texans’ sensitive data will be met with the full force of the law,” Paxton said in a statement.
This was the first lawsuit Paxton’s office argued under a 2009 state law that protects Texans’ biometric data, like fingerprints and facial scans. The law requires businesses to inform and get consent from individuals before collecting such data. It also limits sharing this data, except in certain cases like helping law enforcement or completing financial transactions. Businesses must protect this data and destroy it within a year after it's no longer needed.
In 2011, Meta introduced a feature known as Tag Suggestions to make it easier for users to tag people in their photos. According to Paxton’s office, the feature was turned on by default and ran facial recognition on users’ photos, automatically capturing data protected by the 2009 law. That system was discontinued in 2021, with Meta saying it deleted over 1 billion people’s individual facial recognition data.
As part of the settlement, Meta must notify the attorney general’s office of anticipated or ongoing activities that may fall under the state’s biometric data laws. If Texas objects, the parties have 60 days to attempt to resolve the issue.
Meta officials said the settlement will make it easier for the company to discuss the implications and requirements of the state’s biometric data laws with the attorney general’s office, adding that data protection and privacy are core priorities for the firm.
“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,” a Meta spokesperson said Tuesday.
Meta has about a month to pay the first installment of $500 million to the state. Subsequent installments of $225 million each will be paid annually from 2025 to 2028.
This article was first published by Texas Tribune. Read the original article.
