The Texas lawsuit against Meta, the parent company of Facebook and Instagram, culminates in a historic $1.4 billion settlement

Texas – Announced by Texas Attorney General Ken Paxton on Tuesday, Meta Platforms, the parent company of Facebook and Instagram, has agreed in a historic decision to pay $1.4 billion to settle a privacy complaint with the state of Texas. This settlement closes a crucial chapter in the continuous examination of privacy policies of big technological companies.

Read also: Dallas residents to vote on initiative for more officers, higher police pay and lawful possession of marijuana

Initiated by Paxton in 2022, the lawsuit focused on Meta’s purportedly misusing face recognition technology. Texas claimed Facebook had illegally obtained biometric data from consumers without enough warning or permission, then used this information billions of times via a tool called “Tag Suggestions.” This function helped users of the network to identify and tag people in pictures they shared.

“This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights,” Paxton said in a statement. “Any entity abusing Texans’ sensitive data will be met with the full force of the law.”

Read also: Proposal to cut Dallas neighborhood speed limits from 30 to 25 mph gains traction, the project to cost $3 billion

The state’s legal action was reportedly the first major use of Texas’ 2009 biometric privacy law, which permits damages up to $25,000 per violation—a possible factor in the large figure decided upon in the settlement. Despite the result, Meta, via a spokesman, expressed satisfaction in having the issue resolved and showed a desire in increasing its Texas investment in including possible data center construction. Meta insisted, nevertheless, that the settlement deal included no acknowledgment of any misbehavior.

This case reflects a larger national and worldwide debate on the rights of consumers and the obligations of businesses in the digital era, especially with relation to personal data. Before this, Meta settled a similar biometric privacy lawsuit in Illinois in 2020, paying $650 million on accusations of breaching a strict state privacy legislation.

Read also: Dallas Plan Commission rejects limits on multiplex constructions, sparks debate among local residents

The agreement with Texas would open the path for more legal investigation and possible legislative measures aimed at the usage of personal data—especially biometric information—by tech corporations. These legal systems may have a major impact on how businesses like Meta handle user data and apply technologies that might violate privacy rights as they develop.

To read the final order, click here.Top of Form