Texas Attorney General Ken Paxton has secured a $1.4 billion settlement with Meta Platforms Inc. (formerly known as Facebook) over the unauthorized capture and use of millions of Texans’ personal biometric data.
This settlement marks the largest privacy settlement ever obtained by an Attorney General from a single state and serves as a significant warning to companies engaged in practices that violate privacy rights.
Largest Privacy Settlement in History
The $1.4 billion settlement dwarfs previous records, including a $390 million settlement obtained by 40 states from Google in late 2022.
This case is the first lawsuit and settlement under Texas’s “Capture or Use of Biometric Identifier” Act (CUBI), highlighting the state’s commitment to protecting its citizens’ privacy rights.
Attorney General Paxton emphasized the importance of holding major technology companies accountable for violating privacy laws.
“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,” said Attorney General Paxton.
“This historic settlement demonstrates our commitment to challenging 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.”
In February 2022, Attorney General Paxton sued Meta for unlawfully capturing the biometric data of millions of Texans without obtaining their informed consent as required by Texas law.
The lawsuit revealed that Meta’s data collection practices violated both the CUBI and Deceptive Trade Practices Act.
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Meta’s facial recognition software, initially introduced in 2011 as a Tag Suggestions feature, automatically scanned and recorded facial geometry from photographs uploaded to Facebook without users’ knowledge or consent.
The settlement agreement, reached after only two years of litigation, requires Meta to pay the state of Texas $1.4 billion over five years.
Attorney General Paxton credited the aggressive litigation efforts of co-counsel firms Keller Postman and McKool Smith with achieving this historic outcome.
Zina Bash served as Lead Counsel for Keller Postman, while Sam Baxter and Jennifer Truelove led the team from McKool Smith.
This settlement underscores the importance of informed consent in data collection practices and serves as a precedent for future privacy enforcement actions.
Texans can now rest assured that their biometric data will be protected under the full force of the law.
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