Facebook Agrees to Pay Out $550 Million in Settlement of Facial Recognition Lawsuit

Thanks to an Illinois privacy law, eligible users will soon be able to apply for payments from Facebook for using facial scans without permission.

To settle a class-action lawsuit in Illinois, Facebook announced on Wednesday that it will pay $550 million over its use of facial recognition technology to suggest names of people in users’ photos.

The suit claimed that Facebook had violated an Illinois biometric privacy law when it used facial data for Tag Suggestions, a function that recognized people from across the site in people’s shared photos. The data was taken without permission and without telling residents how long the data would be maintained, according to the lawsuit.

The agreement will be paid out to eligible Illinois users and the plaintiffs for their legal fees. Facebook disclosed the settlement as part of its release of quarterly financial results. When compared with the amount of revenue that Facebook generated in the fourth quarter -- about $21 billion in the last quarter of 2019 -- the payout amounts to a “rounding error for Facebook,” according to The New York Times.

“We decided to pursue a settlement as it was in the best interest of our community and our shareholders to move past this matter,” a Facebook spokesman said in a statement to the Times.

Read More: FTC’s $5 Billion Fine On Facebook Should Serve As ‘Warning’ For Companies Concerned About Data Security

Privacy advocates called the settlement a victory in terms of holding Facebook accountable for the way it handles user data. The company has come under fire since the 2016 presidential election for allowing apps and third-party firms, including the infamous Cambridge Analytica, to mine data and use it to tailor political ads and more toward users.

The case showed the potential power of state laws to police the ways companies can collect and maintain data about their users. Three states have biometric privacy laws, and under the Illinois law, companies have to obtain permission before collecting someone’s fingerprints, facial data or other biological data. Residents can sue companies for up to $5,000 per violation under the law.

“The Illinois law has real teeth. It pretty much stopped Facebook in its tracks,” Marc Rotenberg, the executive director of the Electronic Privacy Information Center, told the Times. “Tech firms and other companies that collect biometric data must be very nervous right now.”

Facebook has discontinued using facial recognition in Europe when regulators questioned the company’s consent system. More recently, in 2018, the use of facial scans was reintroduced as an option for European users. Facebook also updated its facial recognition settings for some users last year and included more information about how that data is collected and used on the platform, according to the Times.

About the Author

Haley Samsel is an Associate Content Editor for the Infrastructure Solutions Group at 1105 Media.

Featured

  • 5 Tips to Improve Your Password Security

    Change Your Password Day is right around the corner. Observed every year on February 1, the day aims to raise awareness about cybersecurity and underscores the importance of keeping passwords strong and up to date. Read Now

  • Enhancing Port Security

    DP World Yarimca, one of the largest container terminals of the Gulf of İzmit and Turkey, is a strong proponent of using industry-leading technology to deliver unrivaled value to its customers and partners. As the port is growing, DP World Yarimca needs to continue to provide uninterrupted operations and a high level of security.To address these challenges, DP World Yarimca has embraced innovative technological products, including FLIR's comprehensive portfolio of security monitoring solutions. Read Now

  • Hot AI Chatbot DeepSeek Comes Loaded With Privacy, Data Security Concerns

    In the artificial intelligence race powered by American companies like OpenAI and Google, a new Chinese rival is upending the market—even with the possible privacy and data security issues. Read Now

  • Survey: CISOs Increasing Budgets for Crisis Simulations in 2025

    Today, Cyber Performance Center, Hack The Box, released new data showcasing the perspectives of Chief Information Security Officers (CISOs) towards cyber preparedness in 2025. In the aftermath of 2024’s high-profile cybersecurity incidents, including NHS, CrowdStrike, TfL, 23andMe, and Cencora, CISOs are reassessing their organization’s readiness to manage a potential “chaos” of a full-scale cyber crisis. Read Now

New Products

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.