Facebook is facing a class-action lawsuit over its use of facial recognition technology in Illinois. The lawsuit alleges that Facebook illegally collected and stored biometric data of users without consent through its “Tag Suggestions” feature that uses facial recognition technology to suggest friends to tag in photos.
In February 2022, Facebook agreed to pay $650 million to settle the class-action lawsuit involving Illinois residents. However, in July 2022, a federal judge rejected the settlement saying the amount was too low. The judge said the settlement should be at least $725 million based on the fees being sought by the plaintiffs’ lawyers. Facebook has agreed to the higher settlement amount of $725 million to resolve the class-action lawsuit.
The Class-Action Lawsuit Against Facebook
The class-action lawsuit against Facebook was filed in 2015 in federal court in California. It was filed on behalf of Illinois residents claiming Facebook’s facial recognition technology violates the Illinois Biometric Information Privacy Act (BIPA). According to BIPA, companies must obtain consent before collecting biometric data such as face prints and cannot profit from such data.
The plaintiffs allege that Facebook violated BIPA by collecting and storing biometric data of users without consent through its “Tag Suggestions” feature. This feature uses facial recognition technology to analyze photos uploaded by users to suggest friends they can tag in the photos.
Over 1 million Facebook users in Illinois were part of the class-action lawsuit against the social media company. They claimed Facebook’s collection and storage of biometric data caused them harm and violated privacy rights.
Key Points of the Class-Action Lawsuit:
- Filed in 2015 on behalf of Illinois Facebook users
- Alleged Facebook violated Illinois BIPA law by collecting biometric data without consent
- Specifically targeted Facebook’s Tag Suggestions feature that uses facial recognition
- Over 1 million Illinois residents joined the class-action lawsuit
- Claimed Facebook’s actions violated privacy rights and caused harm
The $650 Million Settlement Offer
In February 2022, Facebook agreed to pay $650 million to settle the class-action lawsuit over its use of facial recognition technology in Illinois.
The settlement offered a payout of at least $200 to every person in Illinois who appeared in a picture uploaded to Facebook from 2011 to 2015 and was tagged using the Tag Suggestions feature.
The settlement also required Facebook to turn off its face recognition setting for all Illinois users unless they expressly opted in and agree to having their biometric data collected and stored.
Plaintiffs’ lawyers sought approximately $97 million in legal fees out of the $650 million settlement fund.
Key Details of the $650 Million Settlement:
- Offered in February 2022 to settle lawsuit
- $200 minimum payout to every affected Illinois resident
- Required Facebook to turn off face recognition for Illinois users
- Plaintiffs’ lawyers sought $97 million in legal fees
- Total settlement fund was $650 million
Why the Judge Rejected the Settlement
In July 2022, US District Judge James Donato rejected the $650 million settlement agreement between Facebook and the plaintiffs.
Judge Donato said the settlement amount was inadequate given the size of the class, the harm to Illinois residents, and the substantial legal fees sought by the plaintiffs’ lawyers.
The judge indicated that the settlement amount should be at least $725 million. Donato determined this higher amount based on increasing the minimum payout to class members from $200 to $345 per person.
Donato rejected the settlement for the following reasons:
- Settlement amount too low given the class size (over 1 million Illinois residents)
- Harm to Illinois residents justified higher payouts to class members
- $200 minimum payout to each class member was insufficient
- Lawyers’ fees request of $97 million was disproportionately high
The judge ordered both sides to come up with a new settlement with a total value of at least $725 million.
The New $725 Million Settlement
After the judge rejected the initial $650 million settlement, Facebook agreed to increase the amount to $725 million. The new settlement was submitted for preliminary approval in August 2022.
Details of the revised $725 million settlement include:
- Minimum payout per class member increased to $345
- Removal of 5% cap on plaintiffs’ lawyers fees (now around $120 million)
- Increased total settlement value from $650 million to $725 million
- Facebook agreed not to oppose the new settlement
The new settlement maintains the other terms such as requiring Facebook to turn off face recognition for Illinois users unless they opt in.
If approved, the $725 million settlement would become the largest payment from a privacy lawsuit in US history. The increased settlement highlights the potential liabilities companies face over biometric data collection.
Next Steps in the Court Approval Process
Now that Facebook has agreed to increase the class-action settlement to $725 million, here are the next steps in the approval process:
- The revised settlement first goes through a preliminary approval by Judge Donato, which was granted in August 2022.
- Following the preliminary okay, class members are notified about the settlement terms.
- The court holds a final approval hearing where class members can object to the settlement.
- Judge Donato then decides whether to grant final approval after considering any objections.
- If approved, payments are distributed to class members who submit claims.
- Any remaining settlement funds could be donated to non-profits focused on biometric privacy rights.
The final approval hearing could occur by the end of 2022. If the $725 million settlement is approved, it would conclude the 6-year long class-action lawsuit against Facebook over its facial recognition technology practices in Illinois.
Conclusion
Facebook’s use of facial recognition technology through its Tag Suggestions feature prompted a major class-action lawsuit alleging violations of Illinois’ biometric privacy law. The initial $650 million settlement was rejected by a judge for being inadequate. Facebook subsequently agreed to increase the settlement amount to $725 million, which is now going through the approval process. If approved, it would become the largest payout ever for a privacy lawsuit in the US. The case highlights the legal risks companies face regarding biometric data collection and the importance of obtaining consent.