Facebook Announces $550 Million Payout for Illinois Users to Settle Privacy Lawsuit
SAN FRANCISCO (AP) - Facebook announced it will pay $550 million to Illinois users to settle allegations that its facial tagging feature violated their privacy rights.
The funds will be distributed to users in a class-action lawsuit filed in Illinois about five years ago and it stated that Facebook violated a state law protecting residents' biometric information, which could include data from facial, fingerprint and scans.
Illinois has strict biometric privacy laws in the nation. The 2008 law mandates that companies collecting such information obtain prior consent from consumers, detailing how they’ll use it and how long it will be kept. The law also allows private citizens to sue.
A federal court judge in San Francisco now must approve the settlement. It is unknown how much money each user involved in the suit will receive, it has speculated a few hundred dollars.
Facebook had made an argued the collection of biometric information did not harm individuals, and that they do not have grounds to sue under Illinois’ biometrics law.
“We decided to pursue a settlement as it was in the best interest of our community and our shareholders to move past this matter," Facebook spokesman Dina El-Kassaby said in a released statement.
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