Penalty Amount
$1,400,000,000
Texas Attorney General Ken Paxton secured a record-setting $1.4 billion settlement with Meta for unlawfully capturing and using the biometric data of millions of Texans, marking one of the largest privacy settlements in U.S. history.
Meta agreed to pay $1.4 billion and must comply with Texas biometric data laws, including reforms to its data collection and use practices.
In-house legal teams should review all vendor, customer, and data processing agreements that involve the collection, use, storage, or sharing of personal data, with a specific focus on biometric data (e.g., facial recognition, fingerprint scans). Key clauses to scrutinize include: 1) **Data Definition & Scope**: Ensure the contract's definition of 'personal data' or 'sensitive data' explicitly includes 'biometric identifiers' as defined under Texas law (CUBI). 2) **Consent Mechanisms**: Verify that clauses requiring explicit, informed, and affirmative consent for biometric data collection are present and align with CUBI's requirements. 3) **Data Processing & Sharing**: Review restrictions on processing biometric data and any permitted sharing with third parties, ensuring compliance with both CUBI and the Texas Data Privacy and Security Act (TDPSA). 4) **Security & Breach Notification**: Confirm that data security obligations and breach notification timelines meet or exceed TDPSA standards. 5) **Audit & Compliance**: Assess whether the agreement grants the company rights to audit the vendor's compliance and includes indemnification for statutory violations. Changes may be needed to: (a) add or strengthen biometric-specific consent clauses; (b) restrict or prohibit biometric data processing unless absolutely necessary; (c) mandate compliance with Texas-specific privacy statutes; and (d) enhance audit and indemnity provisions to cover penalties under CUBI and TDPSA.
Entity
Meta Platforms, Inc.
Also known as: Meta
Industry
Social MediaOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-leads-nation-protecting-americans-data-privacy-and-security-big-tech
attorney general ken paxton secures 14 billion settlement me
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-secures-14-billion-settlement-meta-over-its-unauthorized-capture
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.
Attorney General William Tong led a bipartisan coalition of 42 attorneys general in urging Meta Platforms to protect users from fraudulent investment ads on Facebook that facilitate pump-and-dump schemes, causing significant financial losses. The coalition calls for enhanced ad review processes, including human review for investment ads, and suggests ceasing investment ads if scams cannot be curbed.
Connecticut Attorney General William Tong joined a bipartisan coalition of 41 attorneys general in sending a letter to Meta Platforms, Inc. to address the rising number of Facebook and Instagram account takeovers by scammers. The coalition criticizes Meta's inadequate security measures and calls for improved protections including multi-factor authentication, increased staffing for response, and stronger enforcement against scammers. The letter urges Meta to take immediate action to safeguard user accounts from hijacking and fraud.
New Jersey, leading a coalition of 41 other attorneys general, sued Meta for knowingly designing addictive Instagram and Facebook features targeting children and teens while falsely claiming the platforms were safe. The lawsuit alleges Meta collected personal data from users under 13 without parental consent, violating the federal Children's Online Privacy Protection Act (COPPA) and state consumer protection laws like the New Jersey Consumer Fraud Act.
New Jersey is co-leading a nationwide investigation into whether Instagram and its parent company Meta Platforms, Inc. are violating state consumer protection laws by employing techniques that induce children, teenagers, and young adults to use the platform in potentially harmful ways. The bipartisan coalition of attorneys general is examining the potential mental and physical health harms resulting from extended engagement, including depression, anxiety, and body image issues.
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.