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Meta fined $1.4 billion in Data Privacy Lawsuit


In a landmark decision, Meta, the parent company of Facebook, has been fined $1.4 billion by the state of Texas for violations of data privacy laws involving biometric data.


The lawsuit, initiated by Texas Attorney General Ken Paxton, accused Meta of collecting and using facial recognition data without user consent through features on Facebook and Instagram.


The lawsuit, originally filed in 2022, accused Meta of violating Texas state law by using the "suggested tags" feature on Facebook photos to collect biometric data without user consent. This data was then used to enhance Meta's targeted advertising system.


Texas law mandates that companies must obtain user consent before collecting biometric information, a requirement Meta failed to meet, leading to this substantial fine​​​​.


This fine marks one of the largest data privacy-related penalties in U.S. history, reflecting the seriousness of the allegations and the stringent stance regulators are taking against data privacy infringements. As part of the settlement, Meta has agreed to disburse the payment in installments over the next five years and to implement significant changes to its data collection and storage practices, ensuring greater transparency and user control over personal information​​.


Attorney General Paxton hailed the settlement as historic, emphasizing the state's commitment to protecting consumer data privacy and holding corporations accountable for unlawful data protection practices.


This case is part of a broader trend where tech companies are increasingly scrutinized for their data privacy handling practices. Previously, Meta has faced various other fines and legal actions globally, highlighting ongoing concerns over how user data is collected, stored, and used by tech giants​​​​.


In addition to the Texas case, Meta is facing a broader lawsuit involving 33 states, including California, Colorado, New York, Arizona, and Illinois. This multi-state lawsuit, filed in October 2023, accuses Meta of designing its platforms to be addictive and harmful to children's mental health, while also violating federal and state consumer protection laws.


The outcome of this lawsuit could force Meta to make substantial changes to how it designs and operates its platforms, potentially leading to more stringent data protection regulations similar to those enforced in the European Union​​.


Meta's business model heavily relies on advertising revenue, with its primary operating segment, the Family of Apps, including Facebook, Instagram, and other digital applications, contributing to 97% of its revenue.


This reliance on user data for targeted advertising underscores the importance of data privacy compliance for the company. With increasing regulatory scrutiny and substantial fines for Data Privacy violations, Meta is under pressure to enhance its data protection practices and rebuild user trust​​.


For individuals and companies looking to strengthen their understanding and implementation of data privacy and data protection, DataPrivacy.Academy offers online world-class certified IAPP & ISACA Data Privacy training courses & certifications.


These courses are designed to provide comprehensive knowledge and practical skills to navigate the complex landscape of data privacy laws and regulations, ensuring robust data protection strategies are in place allowing you to avoid making the same mistakes as Meta.


By investing in our training & certifications, professionals can enhance their expertise in Data Privacy, ensuring compliance and safeguarding personal information in an increasingly digital world.






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