In 2021, Facebook agreed to pay $650 million to settle a class action lawsuit over its use of facial recognition technology in Illinois. The lawsuit alleged that Facebook violated Illinois biometric privacy laws by collecting and storing biometric data from users’ photos without their consent. The settlement is one of the largest payouts for a privacy lawsuit to date.
Summary of the Facebook Biometric Privacy Settlement
Here are some key facts about the Facebook biometric privacy settlement:
- The class action lawsuit was filed in Illinois, which has one of the strictest biometric privacy laws in the U.S.
- The lawsuit alleged Facebook violated Illinois’ biometric law by using facial recognition technology to analyze photos without users’ consent.
- The lawsuit was filed on behalf of Facebook users located in Illinois for whom Facebook created and stored a face template after June 7, 2011.
- In January 2020, a federal judge certified the class action lawsuit to represent over 6 million Facebook users in Illinois.
- In February 2021, Facebook agreed to a settlement of $650 million to end the class action lawsuit.
- The settlement provides for a minimum payout of $200 to every eligible class member who submits a valid claim.
Who is eligible for a payout in the settlement?
To be eligible for a settlement payment, you must have:
- Had a Facebook account at any time between June 7, 2011 and September 30, 2019
- Appeared in at least one photo that was uploaded to Facebook during that timeframe
- Lived in the state of Illinois for at least 6 months during the relevant timeframe
If you meet these criteria, you are likely a member of the class action lawsuit who is entitled to compensation. The final deadline to file a claim online or by mail was November 23, 2022.
How much will each person receive from the settlement?
The $650 million settlement fund will be distributed as follows:
- Every class member who submits a valid claim will receive a minimum payment of $200.
- Class members who appeared in more Facebook photos during the relevant period are entitled to larger payments of between $300-$400.
- If money remains after initial payments, class members could receive additional compensation.
- Payments are expected to average approximately $342 – $345 per person.
Here is a breakdown of the estimated payouts per class member based on the number of eligible photos they appeared in from 2011-2019:
| Number of Photos | Estimated Payout |
|---|---|
| 1 | $200 |
| 2-5 | $300 |
| 6-10 | $400 |
The final amounts may increase if less than 6 million class members file valid claims. The settlement administrator will determine final payment amounts after the claims deadline passes.
When will settlement checks be mailed to class members?
Settlement payments will be mailed or electronically distributed to eligible class members who submitted valid claim forms no earlier than Spring 2023. The settlement administrator will mail paper checks or electronic payments to class members once all claims have been processed and payment amounts finalized.
Updates on the timing of payments will be provided on the settlement website. Claimants should check the site regularly or sign up for email updates about the status of payments.
How can I submit a claim for payment from the settlement?
The deadline to file a claim for the Facebook settlement was November 23, 2022. Claims could be submitted online or by mail. If you did not submit a claim by the deadline, unfortunately you are no longer eligible and cannot receive a payout.
Going forward, Facebook users may still be able to participate in future class action settlements if your biometric data was collected without consent. Several other lawsuits have been filed against Facebook over issues like tracking users across the internet, illicitly collecting call and text data, and allowing Cambridge Analytica access to user information.
Are settlement payments taxable income?
In most cases, settlement payments from class action lawsuits are not considered taxable income to the recipient. The payment is considered non-taxable compensation for the unauthorized collection and use of biometric data under Illinois law.
However, to be sure of the tax implications for your specific situation, it is best to consult with a tax professional.
Conclusion
The Facebook biometric privacy class action settlement provides payments of approximately $200-$400 to Illinois Facebook users who appeared in photos on the platform between 2011-2019. By the November 2022 deadline, over 5 million users had filed claims. Payments are slated to be mailed out by Spring 2023. This landmark settlement highlights growing concerns around privacy and biometric data usage by tech companies. Other lawsuits related to Facebook’s privacy practices are ongoing, so users may have opportunities to participate in future settlements as well.
Looking for more details on the settlement and eligibility? Be sure to check out the settlement website at www.facebookbipaclassaction.com. The site has a full FAQ and timeline, plus options to sign up for email updates on the payment distribution process.
Some key sources for this article include:
- https://www.facebookbipaclassaction.com/
- https://topclassactions.com/lawsuit-settlements/privacy/facebook-biometric-data-settlement/
- https://www.theguardian.com/technology/2022/sep/27/facebook-lawsuit-payout-illinois-users
Background on the Facebook Class Action Lawsuit
In 2015, Facebook users in Illinois sued the company under the state’s Biometric Information Privacy Act (BIPA). This law requires companies to obtain informed consent before obtaining biometric data like face and fingerprint scans.
The class action lawsuit alleged that Facebook’s “Tag Suggestions” feature, which uses facial recognition to match faces to user profiles, violates BIPA. Plaintiffs claimed Facebook never adequately informed users or obtained their consent before extracting and storing biometric data from photos uploaded to Facebook.
Facebook initially tried to argue the lawsuit should be dismissed because plaintiffs had not claimed concrete injuries. However, in 2018 the Ninth Circuit Court of Appeals rejected this notion, allowing the class action to proceed.
In early 2020, a federal judge in California certified the class action on behalf of Illinois Facebook users covered under BIPA. After several years of litigation, negotiations led to the $650 million settlement in February 2021.
The History of Biometric Privacy Concerns and Regulation
Illinois’ BIPA law was enacted in 2008 to get ahead of potential privacy issues surrounding the growing use of facial recognition and other biometric data technologies.
By requiring notice and consent, BIPA provides safeguards around how tech companies obtain, store, and use sensitive biometric identifiers.
Since BIPA passed, Facebook’s photo tagging feature launched and became ubiquitous. However, Facebook never complied with the Illinois law by informing users and getting their consent.
The Facebook class action settlement provided validation to the notion that biometric data requires heightened privacy protections compared to other personal information. Since 2008, several other states have proposed or enacted laws similar to BIPA.
Federal data privacy regulation also continues to evolve. Illinois’ BIPA has proved influential, signaling that biometric data should be treated differently than other categories of personal information.
The Implications of Biometric Privacy Laws for Tech Companies
The Facebook settlement is likely to have ripple effects across the tech industry when it comes to biometric data practices. Other tech firms utilizing facial recognition or biometrics may need to:
- Audit their practices around obtaining informed consent
- Assess their compliance with applicable state biometric privacy laws
- Adjust their approaches to collecting, storing and using biometric data from users
For example, in 2021 Google and Snapchat disabled certain facial recognition features over growing concerns about privacy and potential regulatory violations.
Overall, biometric privacy laws and lawsuits are forcing tech companies to be more transparent with users. Obtaining meaningful, informed consent remains a challenge as technologies like facial recognition become more prevalent.
Ongoing Legal Action Over Facebook’s Privacy Practices
While the $650 million settlement resolves the lawsuit over Facebook’s photo tagging and facial recognition, legal scrutiny continues around the company’s privacy practices more broadly.
In 2022, Facebook’s parent company Meta agreed to pay $90 million to settle a decade-old lawsuit alleging Facebook violated users’ privacy by tracking their internet activity even after they logged off the Facebook platform.
Other pending lawsuits accuse Facebook of illicitly collecting biometric and location data from Instagram users. In addition, thousands of small businesses have filed a class action lawsuit alleging Facebook overstated metrics like video views and inflated ad reach metrics.
As Facebook expands its offerings in payments, e-commerce and the metaverse, regulatory attention and privacy-related lawsuits seem inevitable. The company’s handling of biometric data remains central, even as other concerns like youth safety and hate speech proliferate.
For now, the $650 million settlement in Illinois represents one of the larger payouts for a privacy class action to date. But it’s unlikely to be the last large-scale legal action focused on Facebook’s data privacy practices and lack of informed consent in utilizing sensitive user information like biometric data.
Despite the settlement and disabling of the Tag Suggestions tool, Facebook still faces questions about how it handles privacy, transparency and consent as facial recognition technologies continue advancing.
The Growth of Biometrics and Facial Recognition Technology
Facial recognition technologies have spread rapidly in recent years across areas like:
- Smartphone authentication
- Airport security
- Law enforcement investigations
- Retail and advertising
Global revenues from facial recognition are projected to grow from $3.2 billion in 2020 to $8.5 billion by 2027, according to Mordor Intelligence.
Key players in the space include prominent tech firms like Amazon, Microsoft, Google and IBM. China also has several large facial recognition companies such as SenseTime, Megvii and CloudWalk.
Proponents argue facial analysis has many benefits like enhanced security, improved customer experiences and solving crimes. However, civil liberties groups counter that facial recognition enables unprecedented surveillance while often being inaccurate, biased and used without informed consent.
As adoption spreads, biometric privacy laws aim to ensure citizens retain control over their biological data. But regulating an evolving technology sector presents challenges. The Facebook settlement puts some guardrails in place, but balancing innovation and privacy remains tricky.
Looking ahead, lawmakers are proposing restrictions on facial recognition in public housing, schools, and other government uses. But the private sector lacks comprehensive federal oversight. Until Congress acts, state biometric privacy laws remain the main constraints on tech companies’ biometric data practices.
Key Takeaways
Here are some of the main points to understand about the Facebook biometric privacy settlement:
- A class action lawsuit alleged Facebook’s photo tagging feature violated Illinois biometric privacy law.
- Facebook agreed to a $650 million settlement to end the lawsuit.
- Over 1.5 million Illinois Facebook users submitted claims.
- Payouts are expected to average $342-$345 per person.
- Payments will be distributed as paper checks or electronically.
- The settlement highlights growing concerns around facial recognition technology.
- It may influence practices at other companies utilizing biometrics and facial recognition.
The settlement resolves years of litigation around Facebook’s photo tagging tool, but scrutiny of the company’s privacy practices persists. With rapid innovation in AI and biometrics, debates over data privacy seem poised to continue. This record-breaking settlement is among the first, but likely not the last, focused on biometric data usage by tech firms.
Going forward, it will be important to watch how courts, lawmakers and companies themselves balance the benefits and risks of facial recognition. With smart laws and responsible practices, biometric technologies can thrive while respecting privacy. Though challenging to achieve, striking the right balance is critical as these potentially invasive tools are deployed more pervasively.