In a landmark legal resolution, Texas Attorney General Ken Paxton announced on Tuesday that Meta, the parent company of Facebook, has agreed to a $1.4 billion settlement over allegations of violating state privacy laws.
The lawsuit, filed in February 2022, accused Meta of unlawfully collecting biometric data to train its facial recognition technology, a practice deemed illegal under the Texas Capture or Use of Biometric Identifier Act.
“This historic settlement underscores our resolve to hold major technology firms accountable for breaching privacy laws and misusing Texans’ sensitive data,” Paxton declared. “Any infringement on Texans’ privacy will be addressed with the full force of the law.”
Meta, in response, expressed relief at resolving the lawsuit and reiterated its commitment to ongoing investments in Texas. Under the settlement terms, Meta will disburse the $1.4 billion over the next five years.
This case marks the first enforcement action under Texas’s biometric data protection law. Despite its unprecedented financial magnitude, Meta has faced similar legal challenges before.
In 2021, the company settled a lawsuit in Illinois for $650 million over the unauthorized use of biometric data, reflecting a broader pattern of legal scrutiny concerning its data practices.
Meta, which began implementing facial recognition technology in 2011, had used the software to automatically identify and tag users in photos.
However, privacy concerns intensified, leading Meta to discontinue the technology and delete facial recognition data for over one billion individuals in 2021, shortly after rebranding from Facebook to Meta.
In addition to Facebook, Meta operates Instagram and WhatsApp. Instagram ranks as the third most popular social media platform globally, while WhatsApp is used by 29% of U.S. adults, according to Pew Research Center.
With a valuation exceeding $1 trillion, Meta remains one of the largest technology corporations, alongside industry giants like Apple, Microsoft, and Alphabet.
The settlement with Meta coincides with Texas’s ongoing legal battle against Google. Filed in October 2022, the state’s lawsuit alleges that Google collected users’ voiceprints and facial geometry through its products, including Google Photos, Google Assistant, and Nest Hub Max.
