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Instagram to Pay $68.5 Million in Biometric Privacy Settlement

By Josh Einis
July 19, 2023
in Analysts Coverage, Biometrics, Emerging Payments
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The Inevitability of Biometric Authentication

The Inevitability of Biometric Authentication

Millions of Illinois-based Instagram users could soon find themselves eligible for a share of a $68.5 million class-action biometric privacy settlement, according to Forbes. The State of Illinois sued Instagram for allegedly violating its strict biometric privacy law, which makes it illegal for a company to utilize facial recognition technology without customer consent. The state accused Meta, the parent company of Instagram, of employing facial recognition technology on the platform, which was removed on November 2021.

Instagram users who were residents of Illinois between Aug. 10, 2015 and Aug. 16, 2023 can submit an online claim by late September to qualify for a cut of the settlement. Attorneys for the plaintiffs estimate that four million Illinois residents could qualify for participation.

This news comes at a time of growing awareness and concern surrounding the usage of biometric information without proper consent. The Illinois Biometric Information Privacy Act, enacted in 2008, expressly prohibits companies from collecting and storing biometric data, such as fingerprints, without prior authorization.

Instagram isn’t the only company in violation of breaking the law. Google and Snapchat’s parent company, Snap Inc., have also resolved respective biometric privacy cases for smaller amounts, at $100 million and $35 million, respectively.

Illinois is often at the vanguard of technology regulation. Earlier this year, Mark L. Walker, introduced the Digital Assets Regulation Act (DARA), which aims to regulate digital asset business activity in the state, encompassing crypto, blockchain, DeFi, and NFT sectors. The bill grants the state more power to investigate unapproved digital asset transactions, and arrest those who go against the guidelines.

The $68.5 million biometric privacy settlement involving Meta and Illinois Instagram users shows that Illinois is digging in on privacy and data protection. The payments and fintech sectors should take note of this development, and make sure to notify users accordingly when they snag their biometric info.

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Tags: Biometric AuthenticationBiometricsCustomer PrivacyFacial RecognitionFingerprintsInstagram

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