Landmark Agreement Sets New Precedent for Digital Privacy Rights
Texas Attorney General Ken Paxton has secured a groundbreaking $1.4 billion settlement with Meta (formerly Facebook) over the tech giant's unauthorized collection and use of Texans' biometric data. This record-breaking settlement marks the largest privacy-related payout ever obtained by a single U.S. state, setting a new precedent in the fight for digital privacy rights.
The settlement resolves a 2022 lawsuit filed by the Texas Attorney General's office, which accused Meta of violating the state's "Capture or Use of Biometric Identifier Act" (CUBI) and Deceptive Trade Practices Act. The lawsuit alleged that Meta, through its "Tag Suggestions" feature launched in 2011, automatically collected facial geometry data of millions of Texans without their knowledge or consent.
This historic settlement with Meta 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," said Attorney General Paxton. "Any abuse of Texans' sensitive data will be met with the full force of the law."
Under the terms of the settlement, Meta will pay the state of Texas $1.4 billion over the next five years. The settlement surpasses the previous record of $650 million that Meta paid in 2021 to settle a similar lawsuit in Illinois.
The Texas Attorney General's office worked closely with co-counsel Keller Postman and McKool Smith to secure this landmark settlement. Lead counsel Zina Bash from Keller Postman and Sam Baxter and Jennifer Truelove from McKool Smith played pivotal roles in the aggressive litigation strategy that laid the foundation for this historic outcome.
Companies that operate in Texas must be held accountable for their actions, particularly when it puts the privacy of Texans at risk," said the co-counsel firms in a joint statement.
The settlement serves as a strong warning to Meta and other tech giants that violating Texans' privacy rights through unauthorized data collection practices will not be tolerated. It also highlights the growing importance of state-level privacy laws in holding big tech companies accountable.
In a statement, Meta expressed its satisfaction with resolving the matter and its commitment to exploring future business opportunities in Texas, including the potential development of data centers.
The Texas Attorney General's historic settlement with Meta underscores the state's unwavering stance in protecting the privacy rights of its citizens in the digital age. As technology continues to advance, this landmark case sets a precedent for other states to follow in safeguarding their residents' sensitive information from corporate overreach.
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