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Significant use case: Facebook will pay $ 340 to each of Illinois’ 1.6 million users
Each of the more than 1.5 million Facebook users in Illinois will receive approximately $ 340 as part of a settlement of a violation of state law when the social network collected user data by recognizing their faces without obtaining prior consent. A California federal judge upheld the final ruling on Thursday, 6 years after the start of the trial.
Chris Jackson | Getty Images
“This is money that comes straight out of the pocket of Facebook,” said US District Judge James Donato. – Violations did not lead to monetary losses of victims. But this real money Facebook will pay them to compensate for the perceived privacy damage that people have suffered. “.
Originally, three different Illinois residents filed a lawsuit against Facebook in 2021 and claimed that a feature that suggested tagging other people in photos, which used facial recognition technology, violated their rights under the Illinois Biometric Privacy Act (BIPA). Ultimately, the claims were consolidated into one group complaint and referred to federal court in California.
Illinois passed the BIPA in 2021, and it remains one of the most stringent biometric data laws in the United States. The law requires that any entity that collects biometric data, including fingerprints, voice samples, hand or face geometry, and retinal or iris scans, obtain the prior express consent of the persons whose data is collected. These organizations must also protect the biometric data they collect as strictly as sensitive personally identifiable information.
Plaintiffs in the case alleged that Facebook violated this law when it introduced the “tag suggestion” feature without first obtaining explicit consent from users. In total, about 7 million Facebook users were affected in Illinois, and the law provides for fines of $ 1,000 for each accidental and $ 5,000 for each known violation of the law. Thus, Facebook could be obliged to pay as much as $ 35 billion.
Facebook tried to settle for $ 550 million in June 2021, but the judge rejected this deal, considering the amount insufficient. The following month, he agreed to tentatively sign a modified $ 650 million settlement, which was finalized at a hearing this week.
Law firms representing plaintiffs asked about $ 110 million for their services. It remains to divide the remaining $ 540 million between the approximately 1.6 million plaintiffs who filed an application before November 23 – a total of $ 338 for each. These payments are expected to be delivered to the plaintiffs in a few months. Typically, such class action suits bring plaintiffs literally pennies. So this case is an important precedent in Internet regulation.