What Texas' Record $1.4 Billion Deal with Meta Portends for Biometric Data Capture and Use
Data Strategy, Security and Privacy attorney William Farley was interviewed by Cybersecurity Law Report about a recent settlement between Texas and Meta Platforms Inc. for alleged violations of the state's Capture or Use of Biometric Identifiers Act (CUBI). The record-setting $1.4 billion settlement resolves claims brought by the Texas attorney general in 2022 that Meta violated state laws by implementing a "tag suggestions" feature on Facebook that used facial recognition technology to analyze user-uploaded photos and videos and generate tag suggestions with the names of users and non-users.
Mr. Farley noted the penalty, although steep, could benefit the company in the long run. Under the agreement, Meta will be able to ask the AG's office about certain conduct to determine whether the state will take action against said conduct. "[Getting] a government opinion interpreting prospective conduct could be helpful" and "seems to provide some 'safe harbors,'" because Meta could proactively address concerns and avoid potential liabilities, he said.
Ultimately, the Texas case points to a larger trend of states passing biometric privacy regulations. Illinois' Biometric Information Privacy Act (BIPA) pioneered legislation and enforcement in this field, in particular for its private right of action, but Mr. Farley highlighted that a number of states have followed suit and enacted their own versions of BIPA, making it essential for companies to review current practices and apply a nationwide scope to compliance.
"Compliance with biometric laws is becoming a national issue," he said. "For companies and other organizations that use facial recognition software, the key takeaway from the Meta settlement with Texas is that more states are taking biometrics laws seriously. There are so many state-specific consumer privacy laws and so many different regulations involved with each, there is no magic one-size-fits-all way to handle compliance."
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