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.

  • By Haley Samsel
  • Jan 31, 2020

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

  • Report: 47 Percent of Security Service Providers Are Not Yet Using AI or Automation Tools

    Trackforce, a provider of security workforce management platforms, today announced the launch of its 2025 Physical Security Operations Benchmark Report, an industry-first study that benchmarks both private security service providers and corporate security teams side by side. Based on a survey of over 300 security professionals across the globe, the report provides a comprehensive look at the state of physical security operations. Read Now

    • Guard Services

  • Identity Governance at the Crossroads of Complexity and Scale

    Modern enterprises are grappling with an increasing number of identities, both human and machine, across an ever-growing number of systems. They must also deal with increased operational demands, including faster onboarding, more scalable models, and tighter security enforcement. Navigating these ever-growing challenges with speed and accuracy requires a new approach to identity governance that is built for the future enterprise. Read Now

  • Eagle Eye Networks Launches AI Camera Gun Detection

    Eagle Eye Networks, a provider of cloud video surveillance, recently introduced Eagle Eye Gun Detection, a new layer of protection for schools and businesses that works with existing security cameras and infrastructure. Eagle Eye Networks is the first to build gun detection into its platform. Read Now

  • Report: AI is Supercharging Old-School Cybercriminal Tactics

    AI isn’t just transforming how we work. It’s reshaping how cybercriminals attack, with threat actors exploiting AI to mass produce malicious code loaders, steal browser credentials and accelerate cloud attacks, according to a new report from Elastic. Read Now

  • Pragmatism, Productivity, and the Push for Accountability in 2025-2026

    Every year, the security industry debates whether artificial intelligence is a disruption, an enabler, or a distraction. By 2025, that conversation matured, where AI became a working dimension in physical identity and access management (PIAM) programs. Observations from 2025 highlight this turning point in AI’s role in access control and define how security leaders are being distinguished based on how they apply it. Read Now

Most   Popular

New Products

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame.

  • 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.