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Attorney General Ken Paxton Secures $1.4 Billion Settlement with Meta Over Its Unauthorized Capture of Personal Biometric Data

Meta (formerly known as Facebook)July 30, 2024Texas Attorney General

Penalty Amount

$1,400,000,000

Summary

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.

Remedy

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.

Monetary PenaltyInjunctionConsent Decree

Contract Impact

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.

Contract Search Terms

biometric data consent clausefacial recognition software termsnotice of biometric collectionTexas CUBI complianceinformed consent for data capturebiometric identifier retentionautomated facial geometry scanninguser consent for biometric data

Laws Cited

Violation Types

Entity Details

Entity

Meta (formerly known as Facebook)

Industry

Technology

Official Sources

Source Evidence

Title
"Attor­ney Gen­er­al Ken Pax­ton Secures $1.4 Bil­lion Set­tle­ment with Meta Over Its Unau­tho­rized Cap­ture of Per­son­al Bio­met­ric Data"
Entity Name
"Meta (formerly known as Facebook)"
Fine Amount
"$1.4 billion"
Laws Cited
"Texas's 'Capture or Use of Biometric Identifier' Act (“CUBI”)"
Laws Cited
"the Deceptive Trade Practices Act"
Violation Types
"unlawfully capturing the biometric data of millions of Texans without obtaining their informed consent"

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