On 30 July 2024, Texas Attorney General Ken Paxton secured a $1.4 billion settlement with Meta Platforms Inc. over the unauthorized capture and use of Texans’ biometric data. This record-setting agreement, the largest ever obtained from a single US state, highlights the enforcement of Texas’s “Capture or Use of Biometric Identifier” Act (CUBI).
Background and Legal Context
In February 2022, Paxton filed a lawsuit against Meta, accusing the tech giant of violating CUBI and the Deceptive Trade Practices Act by using facial recognition software without informed consent. The feature, initially called Tag Suggestions, was automatically enabled for Texans without explaining its operation. Meta’s software scanned photographs to capture facial geometry, violating state law that requires explicit consent.
Settlement Details
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- Payment Structure: Meta will pay $1.4 billion over five years. The first installment of $500 million is due within 30 days, with subsequent annual payments of $225 million each.
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- Use of Funds: The state treasury will receive the funds, with portions allocated to attorney fees and the state’s general revenue fund.
Broader Implications
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- Historic Precedent: This settlement surpasses the previous largest privacy-related settlement in the US, a $390 million agreement involving Google and 40 states in 2022.
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- Future Enforcement: The outcome serves as a deterrent to companies engaging in unauthorized biometric data practices, emphasizing the importance of compliance with privacy laws.
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- Legal Framework: This case marks the first enforcement action under CUBI, setting a significant precedent for future privacy litigation in Texas.
Read the press release here.
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