Meta Fined for Collecting the Unauthorized Data

Meta Fined $1.4 Billion for Collecting the Unauthorized Biometric Data

Introduction

Texas General Ken Paxton has reached a $1.4 billion settlement with Meta Fined in Platforms Inc. (formerly Facebook) for collecting unauthorized use of millions of Texans’ biometric data. This settlement represents the largest privacy settlement ever obtained by a state General and sends a strong message to companies that violate privacy rights. This case sets a new precedent for privacy protection, and the fine imposed on Meta serves as a significant warning to other companies. As Meta suffers the consequences of its actions, other tech giants take note.

Largest Privacy Settlement in History

The $1.4 billion settlement sets a new record, surpassing the previous $390 million settlement received by 40 states from Google in late 2022. This case marks the first lawsuit and settlement under Texas’s “Collecting or Use of Biometric Identifier” Act (CUBI), showcasing the state’s dedication to safeguarding its citizens’ privacy rights. Meta fine in this groundbreaking case underscores the gravity of privacy violations. As Meta suffers this financial blow, it may prompt a reevaluation of data collection practices across the industry.

General Paxton emphasized the importance of holding major technology companies accountable for violating privacy laws.

"After vigorously pursuing justice for our citizens whose privacy rights were violated by Meta's use of facial recognition software, I'm proud to announce that we have reached the largest settlement ever obtained from an action brought by a single state."

“This historic settlement demonstrates our commitment to holding the world’s largest technology companies 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.”

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Meta Fined Unauthorized Data Collection

In February 2022, General Paxton sued Meta Fined for unlawfully capturing the biometric data of millions of Texans without obtaining their informed consent as required by Texas law. The lawsuit revealed that Meta’s data collection practices violated both the Texas Capture or Use of Biometric Identifier (CUBI) and the Deceptive Trade Practices Act. The fine imposed on Meta in this case underscores the consequences of unauthorized data collection. As Meta suffers the repercussions, it serves as a cautionary tale for other tech companies.

In 2011, Meta introduced facial recognition software as a Tag Suggestions feature, which automatically scanned and recorded facial geometry from photographs uploaded to Facebook without users’ knowledge or consent. Meta fined for this practice sends a clear message about the importance of user privacy.

Settlement Details

The settlement agreement, reached after only two years of litigation, requires Meta to pay the state of Texas $1.4 billion over five years. Meta Fined in this settlement will be making one of the largest privacy-related payments in history.

General Paxton credited the aggressive litigation efforts of co-counsel firms Keller Postman and McKool Smith with achieving this historic outcome. Zina Bash served as Lead Counsel for Keller Postman, while Sam Baxter and Jennifer Truelove led the team from McKool Smith.

Conclusion

This settlement underscores the importance of informed consent in data collection practices and serves as a precedent for future privacy enforcement actions. Meta Fined $1.4 billion in this case demonstrates the serious consequences of violating privacy laws. The outcome of this lawsuit sends a strong message to tech companies about the importance of protecting user data. With Meta Fined so substantially, other companies may reconsider their data collection practices. As Meta suffers the aftermath of this settlement, it may lead to industry-wide changes in data handling.

Texans can now rest assured that their biometric data will be protected under the full force of the law, and the Meta Fined case serves as a warning to other companies that may be tempted to misuse personal data. The tech industry watches closely as Meta suffers the consequences of its actions, potentially leading to improved privacy practices across the board. As Meta suffers both financially and reputationally, it may spark a broader conversation about data ethics in the digital age.

 

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