Texas officials say Meta, $META, agrees to $1.4 billion settlement over claims tech giant used biometric data without permission

Meta has agreed to pay a record $1.4 billion to settle a lawsuit with the state of Texas over the unauthorized use of biometric data by Facebook users, according to Texas Attorney General Ken Paxton. The lawsuit, filed by Paxton in February 2022, alleged that Meta collected and used the biometric data of millions of Texas residents without the necessary legal permissions. This data was contained in photos and videos uploaded to Facebook.

The attorney general's office claimed that Facebook stored billions of biometric identifiers without user consent after launching a feature called "Tag Suggestions" in 2011. "Unbeknownst to most Texans, Meta ran facial recognition software on virtually every face in the photos uploaded to Facebook, capturing records of the facial geometry of the people depicted," Paxton's office stated.

The office also noted that Meta was aware that Texas' Capture or Use of Biometric Identifier Act prohibits companies from collecting biometric identifiers without first informing individuals and obtaining their consent.

In late 2021, Meta announced it would discontinue its Face Recognition system on Facebook, citing "growing concerns about the use of this technology as a whole."

The legal settlement, filed in Texas state district court in Harrison County, is the largest ever obtained from a single state's action, according to Paxton's office. Meta will pay the $1.4 billion to Texas over a five-year period.

"This historic settlement shows our commitment to holding the world's largest technology companies accountable for breaking the law and violating Texans' privacy rights," Paxton said in a statement on the Meta case. "Any misuse of Texans' sensitive data will be met with the full force of the law," he added.

A Meta spokesperson told CNBC, "We are pleased to resolve this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers."

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