Facebook to Pay $650 Million in US Privacy Lawsuit Settlement

Facebook is accused of using photo face-tagging and other biometric data without the permission of its users.

By Associated Press | Updated: 27 February 2021 11:27 IST

Facebook to Pay $650 Million in US Privacy Lawsuit Settlement

Photo Credit: Reuters

Facebook will have to pay at least $345 to every class member interested in being compensated

Highlights

The class-action lawsuit was filed against Facebook in 2015
US District Judge James Donato approved the deal
Facebook changed its photo-tagging system after the lawsuit was filed

A federal judge on Friday approved a $650 million (roughly Rs. 4,780 crores) settlement of a privacy lawsuit against Facebook for allegedly using photo face-tagging and other biometric data without the permission of its users.

US District Judge James Donato approved the deal in a class-action lawsuit that was filed in Illinois in 2015. Nearly 1.6 million Facebook users in Illinois who submitted claims will be affected.

Donato called it one of the largest settlements ever for a privacy violation.

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“It will put at least $345 (roughly Rs. 25,400) into the hands of every class member interested in being compensated,” he wrote, calling it “a major win for consumers in the hotly contested area of digital privacy.”

Jay Edelson, a Chicago attorney who filed the lawsuit, told the Chicago Tribune that the checks could be in the mail within two months unless the ruling is appealed.

“We are pleased to have reached a settlement so we can move past this matter, which is in the best interest of our community and our shareholders,” Facebook, which is headquartered in the San Francisco Bay Area, said in a statement.

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The lawsuit accused the social media giant of violating an Illinois privacy law by failing to get consent before using facial-recognition technology to scan photos uploaded by users to create and store faces digitally.

The state's Biometric Information Privacy Act allowed consumers to sue companies that didn't get permission before harvesting data such as faces and fingerprints.

The case eventually wound up as a class-action lawsuit in California.

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Facebook has since changed its photo-tagging system.

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