Meta Settles $1.4 Billion Lawsuit Over Facial Recognition Practices in Texas

Meta Reaches Landmark Settlement Over Facial Recognition Practices

In a significant legal development, Meta Platforms Inc., the parent company of Facebook and Instagram, has agreed to a groundbreaking settlement worth $1.4 billion with the state of Texas. This settlement addresses allegations that the company unlawfully collected facial recognition data from millions of users, in clear violation of state privacy regulations.

The legal action, initiated in 2022, accused Meta of breaching Texas state privacy laws by automatically tagging users’ faces without their explicit consent. Texas Attorney General Ken Paxton described the agreement as the largest privacy settlement ever reached by a U.S. state, emphasizing the importance of privacy rights in the digital age.

“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,” Mr. Paxton stated. He further affirmed that any misuse of sensitive data belonging to Texans would be met with serious legal consequences.

As states increasingly adopt and enforce stringent privacy laws—especially in the absence of a comprehensive federal privacy framework—Texas, along with Illinois and Washington, has established biometric privacy laws aimed at regulating the collection of facial, voice, and other biometric data.

Under Texas law, known as the Capture or Use of Biometric Identifier Act, companies are mandated to obtain explicit consent before utilizing technologies such as facial or voice recognition. The legislation stipulates that the state can impose penalties of up to $25,000 for each violation.

The lawsuit specifically targeted Meta’s “tag suggestions” feature, which facilitated the tagging of individuals in photographs. Launched in 2011, this functionality relied on facial recognition software that was automatically activated for users, contravening Texas laws that require prior permission for such practices, according to the allegations raised by the state.

In the wake of the settlement, Meta has not acknowledged any wrongdoing. A company spokesperson expressed satisfaction with the resolution, stating, “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.”

This case highlights the increasing scrutiny and regulatory challenges faced by major tech companies in their handling of personal data, as states take a more proactive stance in protecting consumer privacy.