- The $ 650 million settlement is one of the largest ever in a US privacy lawsuit.
- According to the case, Facebook violated Illinois law prohibiting the collection of biometric data without permission.
- About 1.6 million claimants will receive a payout of at least $ 345, the lawsuit reads.
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A federal judge has approved a settlement in which Facebook will pay $ 650 million to users who have sued the social media company over the labeling feature.
The settlement, which is one of the largest ever from a privacy lawsuit, was a “significant result,” U.S. Judge James Donato of the Northern District of California said in his Friday order. About 1.6 million people who joined the case will receive a payout of at least $ 345.
“Overall, the settlement is a major victory for consumers in the area of digital privacy,” Judge Donato wrote. “The permanent issue makes this settlement all the more valuable as Facebook and other major technology companies continue to fight the claim that a legitimate invasion of privacy is a real harm.”
The class action lawsuit was first filed in Illinois in 2015. Facebook users allege that the company violated the Biometric Information Privacy Act, which prohibits a private entity from collecting, storing, or using biometric identifiers or information without prior notice and written permission.
The lawsuit alleges that as of June 2011, Facebook has created and stored a face template for Illinois users, as part of its function of tagging or identifying individuals on photos. “The class members allege that Facebook collected and stored their biometric data, namely digital scans of their faces, without prior notice or permission,” the settlement order reads.
Facebook did not immediately respond to a request for comment on the settlement of the case. The social media giant has been fighting the case, saying it has always unveiled its face recognition technology. It also said users have the option to disable it.
This is not the first time that Facebook has received a setback for its face recognition feature. In 2019, Facebook will begin requiring users to take action to use their face recognition tool, after the FTC fined the company $ 5 billion for its role in the Cambridge Analytica privacy breach, as previously reported by Insider.
Facebook originally tried to settle the Illinois case for $ 550 million, but the judge presiding over the case rejected the offer.