Texas Attorney General Ken Paxton’s privacy lawsuit against Meta has concluded with a $1.4 billion settlement. This lawsuit marks the largest settlement a single state has achieved against a corporation, with Meta agreeing to pay the amount over the next five years.
Despite the hefty settlement, Meta did not admit to any wrongdoing but instead discontinued the problematic feature in 2021 and erased all stored facial scan data.
Paxton highlighted this settlement as a significant achievement, emphasizing Texas’s commitment to holding major tech companies accountable for legal violations and protecting residents’ privacy rights.
He stated that any abuse against Texans would be met with stringent actions, reflecting his satisfaction with the lawsuit’s outcome. Meta, in contrast, responded diplomatically, expressing its satisfaction in resolving the issue and its interest in future investments in Texas, including potential data centers.
The lawsuit’s origin dates back to 2011 when Meta, then Facebook, introduced a feature that scanned users’ faces in photos to facilitate tagging. The feature was activated by default, causing privacy concerns similar to those faced by Microsoft’s Windows Recall feature.
Meta’s default setting and lack of explicit user consent for biometric data collection violated Texas’s 2009 statute on biometric data use and the Deceptive Trade Practices Act.
In 2022, Paxton filed a lawsuit against Meta, citing these violations. He announced the lawsuit at a news conference in downtown Marshall, indicating the state’s longstanding concerns over Meta’s practices. The case progressed over two years before reaching this historic settlement.
Meta’s decision to settle and erase facial scan data represents a pivotal moment in digital privacy and corporate accountability.
This outcome highlights the legal and ethical obligations of major tech companies, setting a precedent for addressing similar privacy violations in the future. It also emphasizes the important role state attorneys general play in safeguarding citizens’ rights.
