Federal Court Approves the Largest Privacy-Related Cash Settlement

On February 26, 2021, a federal judge approved $650 million settlement of a BIPA lawsuit against Facebook, the largest privacy-related cash settlement.

The lawsuit was brought under the Illinois Biometric Information Privacy Act (BIPA), which requires private entities to provide notice and obtain written consent before biometric information is collected, prohibits the sale of and restricts the overall disclosure of biometric information, and requires companies to follow a reasonable standard of care in storing, transmitting, and protecting biometric information from disclosure.

The lawsuit alleged that plaintiffs did not consent to having their uploaded pictures scanned with facial recognition software for purpose of “tag suggestions” and weren’t informed of how long the data would be saved when the mapping started in 2011.

Last year, Facebook reached a tentative $550 million settlement – already the largest privacy-related cash payout – with plaintiffs, but it was rejected by the federal judge on the grounds that it did not provide adequate compensation to class members.

The Facebook settlement is a stark reminder that companies ignoring their obligations under the privacy laws are doing so at their own peril.  With courts seeking to protect consumers’ privacy rights, even a record-setting settlement might not be enough for the defendant company to walk away from the privacy litigation.

Ask Clarip today how we can help you solve your biggest data privacy compliance pain points. Schedule a demo of the Clarip’s Privacy Compliance software or call 1-888-252-5653 today!