Federal Court Approves a $1 Million BIPA Settlement over Failure to Obtain Consent

On May 12, 2021, a United States District Court for the Northern District of Illinois approved a $987,850 settlement of a class action lawsuit against Lifespace Communities, an owner and operator of a continuing care retirement community, over its alleged violations of the Illinois Biometric Information Privacy Act (BIPA).  The company allegedly required its employees to scan their fingerprints to track work hours.

BIPA requires private entities to (1) develop a publicly available written policy establishing a retention schedule and guidelines for permanently destroying biometric information, (2) inform data subject that biometric data is collected and stored; (3) inform data subject of the specific purpose and length of term for which biometric information is collected, stored, and used; (4) obtain written consent from data subject before collecting biometric information; and (5) use a reasonable standard of care in storing, transmitting, and protecting biometric information from disclosure.

Private entities may not disclose biometric information unless they obtain data subject’s consent or the disclosure is required for certain enumerated purposes, such as to complete a financial transaction or to comply with a subpoena.  Finally, BIPA prohibits private entities from selling, leasing, trading, or otherwise profiting from biometric information.

The Lifespace Communities lawsuit alleged that the company violated BIPA because it did not obtain informed consent from its employees to use the fingerprint time clock system, did not disclose its data collection intentions, and did not inform workers that it was sharing their information with third parties.

In addition to the payment of the settlement funds, the company has agreed to provide information detailing implementation of a biometric policy and the use of a consent form to obtain permission from employees.

Take a tour of Clarip’s patented data privacy technology and learn how Clarip can help your enterprise comply with emerging state level data subject rights regulations. Call Clarip today at 1-888-252-5653 or schedule a Demo Online!