Meta to pay $1.4 billion for illegally collecting biometric data of Texas residents

It has been reported that Meta Platforms has reached a settlement with the state of Texas to resolve a lawsuit filed by the state, accusing the company of illegally using facial recognition technology to collect biometric data of Texans without their consent. Meta has agreed to pay a massive $1.4 billion over five years. The parties announced that they reached a settlement in May, a few weeks before the trial was set to begin.

The lawsuit, filed in 2022 by Texas Attorney General Ken Paxton in state court, alleged that Meta used facial recognition software on photos uploaded to Facebook without the consent of Texans. The Attorney General's office stated that Facebook uploaded and stored billions of biometric identifiers without user consent after introducing the "Tag Suggestions" feature in 2011, which automatically recognized friends' faces in a user's photos.

According to the Attorney General, Meta did this despite knowing that Texas law, the Texas Capture or Use of Biometric Identifiers Act (CUBI), prohibits companies from collecting biometric identifiers from Texans without prior notice and consent.

In late 2021, Meta announced it was shutting down its facial recognition system on Facebook, citing "growing concerns about the use of this technology in general." According to the Attorney General's office, the amount to be paid under the settlement is the largest ever obtained from a single state lawsuit.

"This historic settlement demonstrates our commitment to standing up to the world's largest technology companies and holding them accountable for violating the law and infringing on Texans' privacy rights," Texas Attorney General said on Tuesday.

A Meta spokesperson told CNBC, "We are pleased to have resolved this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including the potential expansion of data center operations."