Facebook facial recognition lawsuit: Company paying $550 million

Facebook facial recognition lawsuit: Company paying $550 million

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Facebook has agreed to pay $550 million to settle a class-action lawsuit over its use of facial recognition technology in Illinois.

Three Illinois residents sued Facebook under a state law, the Biometric Information Privacy Act, one of only two in the nation to regulate commercial use of facial recognition. The class action, which involved gathering facial data for a feature that suggests the name of people in users’ photos, could have exposed Facebook to billions in damages.

Under the agreement, the $550 million payout will go to eligible Illinois users and legal fees.

Facebook disclosed the settlement as part of its quarterly financial results.

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The law firms representing Facebook users in the facial recognition suit called it the largest cash settlement ever to resolve a privacy related lawsuit. The settlement comes as rapidly growing practice of collecting biometric data stokes Orwellian alarm.

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