Penalty Amount
$1,400,000,000
Texas Attorney General Ken Paxton secured a $1.4 billion settlement with Meta over the company’s decade-long unauthorized capture of Texans’ facial geometry via its Tag Suggestions feature, which used facial recognition software without providing notice or obtaining informed consent. The practices violated Texas’s Capture or Use of Biometric Identifier Act (CUBI) and Deceptive Trade Practices Act, as Meta automatically enabled the feature for all Texans without explaining its functionality or seeking permission. This is the largest privacy settlement ever obtained by a single state attorney general, with Meta required to pay the penalty over five years and cease the unlawful biometric data practices.
Meta must pay $1.4 billion to the State of Texas over a five-year period and permanently stop capturing or using Texans’ biometric identifiers, including facial geometry, without first providing clear notice and obtaining explicit informed consent as required by Texas law. The settlement is formalized via a final court-ordered consent decree that enjoins all unlawful biometric data collection practices.
In-house legal teams should immediately review all vendor agreements involving biometric data collection, facial recognition tools, or automated user data capture to ensure compliance with state biometric privacy laws like Texas CUBI. Contracts must include explicit requirements for vendors to provide clear, upfront notice to users about biometric data collection practices and obtain opt-in informed consent before capturing any biometric identifiers (including facial geometry). Clauses related to automatic feature enablement (e.g., photo tagging) should be updated to prohibit activation without user consent, and audit rights should be added to verify vendor compliance. Teams should also ensure vendors are liable for violations of state deceptive trade practices acts related to undisclosed data collection, as penalties for noncompliance can reach billions of dollars.
Entity
Meta (formerly known as Facebook)
Industry
TechnologyOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-secures-14-billion-settlement-meta-over-its-unauthorized-capture
Final State of Texas v Meta Order 2024
https://texasattorneygeneral.gov/sites/default/files/images/press/Final%20State%20of%20Texas%20v%20Meta%20Order%202024.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"Attorney General Ken Paxton Secures $1.4 Billion Settlement with Meta Over Its Unauthorized Capture of Personal Biometric Data"
"Meta (formerly known as Facebook)"
"$1.4 billion"
"Texas's 'Capture or Use of Biometric Identifier' Act (“CUBI”)"
"the Deceptive Trade Practices Act"
"unlawfully capturing the biometric data of millions of Texans without obtaining their informed consent"
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.
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