Facebook Settles Lawsuit Over Data Privacy For $550 Million
The settlement amounts to $550 million. The value of the settlement was revealed in Facebook’s quarterly earnings report which also reported $21 billion in revenue. This represents 25% increase in revenue.
Companies have been facing increasing scrutiny for privacy violations that have resulted in class-action lawsuits with financial benefits for consumers. Equifax recently settled a lawsuit with $380.5 million.
The lawsuit against Facebook cited a comprehensive biometric privacy law in Illinois. Currently, only three states in the U.S. have laws that protect the biometric data of consumers. Facebook was sued for using facial recognition technology to inform a technology that would suggest to users how to tag individuals in photos uploaded onto the social media platform. Facebook was accused of collecting data without telling users when it was harvested and whether it would be stored.
“The Illinois law has real teeth. It pretty much stopped Facebook in its tracks,” said Marc Rotenberg, the executive director of the Electronic Privacy Information Center. “Tech firms and other companies that collect biometric data must be very nervous right now.”