Texas Secures Record $1.4 Billion Settlement with Meta Over Biometric Data Collection

Texas Attorney General Ken Paxton has secured a historic $1.4 billion settlement with Meta (formerly Facebook) to halt the company’s practice of capturing and using the personal biometric data of millions of Texans without the legally required authorization. This settlement marks the largest ever obtained from an action brought by a single state and sets a new benchmark for privacy settlements by state attorneys general.

In February 2022, Attorney General Paxton filed a lawsuit against Meta, alleging that the company violated Texas's "Capture or Use of Biometric Identifier" Act (CUBI) and the Deceptive Trade Practices Act by unlawfully capturing the biometric data of Texans without obtaining informed consent. The lawsuit specifically targeted Meta’s use of facial recognition software, which was embedded in the "Tag Suggestions" feature launched in 2011. This feature, designed to enhance user experience by simplifying the tagging of people in photos, automatically scanned and captured facial geometry from virtually every photograph uploaded to Facebook.

Despite knowing the legal restrictions under CUBI, Meta enabled this feature without adequately informing users or obtaining their consent. The unauthorized data collection continued for over a decade, impacting millions of Texans. The lawsuit and subsequent settlement represent the first legal action and resolution under Texas's CUBI Act, highlighting the state's commitment to protecting its citizens' privacy rights.

Historic Settlement

The $1.4 billion settlement, to be paid over five years, dwarfs previous privacy settlements, including the $390 million settlement that 40 states collectively obtained from Google in late 2022. Attorney General Paxton emphasized the significance of this outcome, stating, “After vigorously pursuing justice for our citizens whose privacy rights were violated by Meta’s use of facial recognition software, I’m proud to announce that we have reached the largest settlement ever obtained from an action brought by a single State. 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.”

This settlement not only underscores the growing scrutiny of tech giants' data collection practices but also serves as a warning to other companies engaged in similar activities. The aggressive litigation strategy employed by Attorney General Paxton, with the assistance of co-counsels from Keller Postman and McKool Smith, was crucial in securing this outcome. Lead Counsel Zina Bash from Keller Postman, along with Sam Baxter and Jennifer Truelove from McKool Smith, played pivotal roles in driving the case to this historic conclusion.

As part of the settlement, Meta is expected to adjust its practices regarding biometric data collection in Texas, although specific details of these changes were not immediately available. This case serves as a significant victory for privacy advocates and demonstrates the increasing willingness of state authorities to challenge major technology companies over data protection issues. It also sets a precedent for future privacy-related legal actions, potentially influencing how companies across the tech industry handle sensitive user data.

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