Facebook to pay $1.4 billion to settle unauthorized facial recognition lawsuit

According to a report by CNBC, Meta, the parent company of Facebook, has agreed to pay $1.4 billion to settle a biometric data lawsuit filed in Texas. The lawsuit involved Facebook's unauthorized use of users' personal biometric data from photos and videos uploaded on the social media platform.

Meta to Pay $1.4 Billion Settlement

Texas Attorney General Ken Paxton announced that Facebook has agreed to pay a record-breaking $1.4 billion to settle a lawsuit brought by the state of Texas over Facebook's unauthorized use of user biometric data. The lawsuit, filed by Paxton in February 2022, accused Meta of capturing and using the biometric data of millions of Texas residents without legal consent.

After introducing a new feature called "Tag Suggestions" in 2011, Facebook stored billions of biometric identifiers without customer consent. Paxton stated that for over a decade, Meta used facial recognition software on every face uploaded to Facebook photos, capturing records of the facial geometry of the individuals depicted.

Reportedly, Paxton is also pursuing similar lawsuits involving biometric data against Google's parent company, Alphabet.

Meta Announced Shutting Down Facebook's Facial Recognition System in 2021

Meta announced at the end of 2021 that it would be shutting down the facial recognition system on Facebook, citing "growing concerns about the use of the technology." However, Meta has not completely abandoned facial recognition technology. They will still use the technology in limited cases, such as when users need facial recognition for identity verification or in preventing fraud or impersonation. Additionally, Meta will continue to explore other significant applications of facial recognition, such as unlocking accounts, identity authentication for financial products or services, or unlocking devices.

A spokesperson for Meta told CNBC:

We are pleased to resolve this matter and look forward to exploring future opportunities, deepening our business investments in Texas, including potential data center development.

EU's "AI Act" Restricts the Use of Facial Recognition

The European Union officially passed the Artificial Intelligence Regulation Act (AI Act) in December 2023, making it the world's first AI legislation aimed at ensuring the safety, fairness, and reliability of artificial intelligence systems, and preventing their use for discrimination, abuse, or other improper behaviors. Among the prohibitions is the act of capturing people's facial images through the internet or surveillance cameras to create facial recognition systems.