Texas Attorney General Ken Paxton has secured a monumental $1.4 billion settlement from Meta Platforms, Inc., formerly known as Facebook, over allegations of unauthorized use of facial and biometric data of its users. This settlement, stemming from a decade-long practice, marks a significant moment for privacy rights enforcement against major technology firms.
According to Paxton, the controversy began in 2011 when Facebook introduced a “tag” feature that utilized sophisticated software to identify and categorize faces in photographs. This feature was activated by default, with no clear explanation of its workings, thereby violating a 2009 Texas statute that regulates biometric data usage and the state’s deceptive trade practices act.
“Unbeknownst to most Texans, for more than a decade Meta ran facial recognition software on virtually every face contained in the photographs uploaded to Facebook, capturing records of the facial geometry of the people depicted,” Paxton stated.
This legal action underscores the growing scrutiny over how companies manage and utilize personal data, particularly sensitive biometric information. For small business owners and solopreneurs, this case highlights the critical importance of adhering to data protection laws to avoid similar legal entanglements.
Despite the hefty penalty, Meta has not admitted any wrongdoing. In 2021, the company ceased its previous use of facial-recognition technology and deleted the face-scan data of over one billion users.
The payment of the settlement, which Paxton noted as the largest ever secured by a single state against a company, will be distributed over a five-year period. 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,” he remarked.
A Meta spokesperson responded to the settlement by expressing the company’s satisfaction in resolving the issue, noting, “We are pleased to resolve this matter,” and expressing an interest in “exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers.”
This legal confrontation comes during a tumultuous period for Paxton, who faced impeachment charges last year and remains under federal investigation. Despite these challenges, his aggressive stance against large tech entities has solidified his position as a key player in the ongoing debate over privacy and corporate responsibility, especially as he is considered a potential U.S. attorney general in a future administration.
For businesses navigating the digital landscape, this settlement serves as a potent reminder of the legal and ethical responsibilities inherent in handling personal data, ensuring trust and compliance are at the forefront of their operational priorities.
