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

  • The Future of Access Control: Cloud-Based Solutions for Safer Workplaces

    Access controls have revolutionized the way we protect our people, assets and operations. Gone are the days of cumbersome keychains and the security liabilities they introduced, but it’s a mistake to think that their evolution has reached its peak. Read Now

  • A Look at AI

    Large language models (LLMs) have taken the world by storm. Within months of OpenAI launching its AI chatbot, ChatGPT, it amassed more than 100 million users, making it the fastest-growing consumer application in history. Read Now

  • First, Do No Harm: Responsibly Applying Artificial Intelligence

    It was 2022 when early LLMs (Large Language Models) brought the term “AI” into mainstream public consciousness and since then, we’ve seen security corporations and integrators attempt to develop their solutions and sales pitches around the biggest tech boom of the 21st century. However, not all “artificial intelligence” is equally suitable for security applications, and it’s essential for end users to remain vigilant in understanding how their solutions are utilizing AI. Read Now

  • Improve Incident Response With Intelligent Cloud Video Surveillance

    Video surveillance is a vital part of business security, helping institutions protect against everyday threats for increased employee, customer, and student safety. However, many outdated surveillance solutions lack the ability to offer immediate insights into critical incidents. This slows down investigations and limits how effectively teams can respond to situations, creating greater risks for the organization. Read Now

  • Security Today Announces 2025 CyberSecured Award Winners

    Security Today is pleased to announce the 2025 CyberSecured Awards winners. Sixteen companies are being recognized this year for their network products and other cybersecurity initiatives that secure our world today. Read Now

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.

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.

  • 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.