Texas Attorney General Ken Paxton Secures $1.4 Billion Settlement with Meta Over Unauthorized Biometric Data Collection

Texas Attorney General Ken Paxton has announced a historic $1.4 billion settlement with Meta, the parent company of Facebook, over the unauthorized collection and use of biometric data from millions of Texans. The lawsuit, filed by Paxton in February 2022, accused Meta of capturing and storing biometric data from photos and videos uploaded to Facebook without obtaining the legally required consent from users. This settlement, the largest ever secured by a single state, underscores the importance of protecting citizens’ privacy rights and holding major technology companies accountable for their practices.

The unauthorized data collection began with the introduction of Facebook’s “Tag Suggestions” feature in 2011, which used facial recognition software to identify individuals in photos. According to the lawsuit, Meta’s actions violated the Texas Capture or Use of Biometric Identifier Act, which mandates that companies must inform individuals and obtain their consent before collecting their biometric data. Despite being aware of these legal requirements, Meta continued to collect biometric identifiers without users’ consent for more than a decade.

Paxton’s office highlighted that Meta stored billions of biometric identifiers, capturing records of the facial geometry of people depicted in uploaded photos and videos. This extensive data collection was done without the knowledge or consent of the users, which led to the legal action by the state of Texas. The settlement, to be paid out over five years, is a significant victory for privacy rights advocates and sets a precedent for future actions against companies that violate privacy laws.

In his statement, Attorney General Paxton emphasized the commitment of his office to stand up to major technology companies and ensure they are held accountable for breaking the law and violating privacy rights. He stated, “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.”

Meta, while agreeing to the settlement, expressed a desire to move forward and explore future opportunities to invest in Texas, including the potential development of data centers. A spokesperson for Meta told CNBC, “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.”

In addition to the case against Meta, Paxton’s office is continuing to pursue a similar lawsuit against Alphabet, the parent company of Google, for allegedly illegally collecting biometric data from millions of Texans. This ongoing legal action further demonstrates the Attorney General’s dedication to protecting the privacy rights of Texas residents and ensuring that technology companies comply with state laws.

The landmark settlement with Meta is a clear message to other companies about the importance of respecting privacy regulations and obtaining proper consent before collecting biometric data. It highlights the critical role of legal oversight in the technology industry and the need for robust protections to safeguard personal information in an increasingly digital world.