Texas Attorney General Ken Paxton has reached a landmark $1.4 billion settlement with Meta Platforms Inc., the parent company of Facebook, over allegations of unauthorized biometric data collection. The agreement marks the largest sum ever obtained from a single state's action and sets a historical precedent in privacy law enforcement. As per the announcement made by the Texas AG's office, this settlement surpasses the previous record of a $390 million settlement reached by a coalition of 40 states in an action against Google in late 2022.
In a statement provided by the Texas Attorney General's office, Paxton said, "After vigorously pursuing justice for our citizens whose privacy rights were violated by Meta’s use of facial recognition software, I’m proud to announce that we have reached the largest settlement ever obtained from an action brought by a single State." The case centered on Meta's use of a facial recognition feature introduced in 2011, which purportedly captured and processed the facial geometry of individuals in photos without proper consent. This practice spanned over a decade and was allegedly in direct violation of Texas's "Capture or Use of Biometric Identifier" Act, commonly known as CUBI.
Meta proceeded with the deployment of Tag Suggestions, later evolving into facial recognition technology, applying it to every user in Texas, turning it on by default with minimal explanation on the operation and implications of the technology. The initiative to hold Meta accountable began in February 2022, with Paxton accusing the tech giant of not only capturing biometric data illicitly but also violating Texas's Deceptive Trade Practices Act. He cited a commitment to ensuring Texas citizens' privacy rights are preserved.
This settlement is expected to be paid out over five years, according to the details of the agreement. In the pursuit of accountability, Paxton acknowledged the efforts of Keller Postman and McKool Smith. He especially commended Zina Bash, Lead Counsel for Keller Postman, and Sam Baxter and Jennifer Truelove, Lead Counsel for McKool Smith, alongside many other esteemed lawyers at each firm for their aggressive litigation strategies. These strategies ultimately helped cement a historic victory for privacy rights and may serve as a deterrent for any future misuse of sensitive personal data by other technology firms.