Penalty Amount
$1,400,000,000
Meta captured facial recognition data from millions of Texans without consent, violating Texas biometric privacy laws. The company agreed to pay $1.4 billion over five years to settle the case. This is the largest privacy settlement obtained by a single state.
Meta must pay $1.4 billion over five years and cease its unauthorized capture and use of biometric data from Texans.
In-house legal teams should prioritize reviewing all vendor, customer, and data processing agreements that involve the collection, use, or sharing of personal data, with specific focus on clauses governing biometric data (including facial recognition). Key clauses to scrutinize include: consent mechanisms (ensuring explicit, opt-in consent for biometric identifiers under laws like CUBI), data retention schedules (to verify biometric data is not stored longer than necessary), data sharing and subprocessing provisions (to control third-party access), and breach notification clauses (to ensure timely reporting of biometric data incidents). Agreements may require amendments to add specific biometric consent language, implement clear opt-out mechanisms for biometric data collection, align retention periods with legal requirements, and update representations/warranties to avoid deceptive practices regarding data use.
Entity
Meta
Industry
Social MediaTexas Attorney General Ken Paxton launched an investigation into Meta regarding its Meta AI Glasses, alleging unlawful collection of facial biometric data, deceptive privacy representations, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses’ always-on recording mode lacks proper notice, subcontractors access private user content including intimate moments, and Meta plans to deploy facial recognition technology to collect unsuspecting individuals’ facial geometry. The AG issued a Civil Investigative Demand to determine if Meta violated Texas law by deceptively misrepresenting its data use practices.
Connecticut Attorney General William Tong, leading a coalition of 35 attorneys general, urged Meta to enforce its policies against misleading AI-generated weight loss ads on Instagram and Facebook. The ads promote non-FDA approved GLP-1 drugs without disclosing risks and use fake AI content. The coalition demands Meta restrict such ads, require clear risk disclosures, and label AI-generated content.
A coalition of 42 attorneys general filed a federal lawsuit against Meta, alleging that the company designed addictive features that harm youth mental health and violated COPPA by collecting children's data without parental consent. The lawsuit seeks injunctive relief, monetary penalties, and restitution.
The FTC proposed modifications to its 2020 privacy order with Meta, alleging violations including non-compliance with the order, misleading parents about Messenger Kids, and unauthorized data sharing. The proposed changes include banning monetization of youth data, pausing new product launches, and strengthening privacy requirements.
Texas Attorney General Ken Paxton launched an investigation into Meta's Meta AI Glasses over allegations of unlawful facial biometric data collection, deceptive privacy practices, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses' always-on recording mode lacks proper user notice, planned facial recognition features would collect data without consent, and private user videos are accessed by third-party annotators in Kenya. The AG issued a Civil Investigative Demand to Meta to determine violations of Texas privacy laws.
Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.