Meta settles $1.4 billion lawsuit with Texas over unauthorized biometric data use

Meta Platforms Inc., the owner of Facebook, has agreed to a $1.4 billion settlement with the state of Texas over allegations of unauthorized biometric data use. Texas Attorney General Ken Paxton announced the settlement on Tuesday, following a lawsuit filed in February 2022.

The lawsuit accused Meta of illegally capturing and using the biometric data of millions of Texas residents through photos and videos uploaded to Facebook. This data was stored without obtaining the legally required permissions, violating Texas’ Capture or Use of Biometric Identifier Act. The allegations stem from Facebook’s “Tag Suggestions” feature, introduced in 2011, which utilized facial recognition software to suggest tags based on the facial geometry of individuals in uploaded photos.

“Unbeknownst to most Texans, for more than a decade, Meta ran facial recognition software on virtually every face contained in the photographs uploaded to Facebook, capturing records of the facial geometry of the people depicted,” Paxton’s office stated.

The settlement, the largest ever obtained by a single state, will be paid out over five years. Paxton emphasized the significance of the settlement, stating, “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.”

Meta expressed its willingness to resolve the issue, with a spokesperson stating, “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.”

The settlement agreement was finalized nearly two months ago, just before a June trial. The law firms McKool Smith and Keller Postman, representing Texas, requested a pause in proceedings to formalize the terms of the deal before its public announcement.