Clearview AI has settled a class-action lawsuit over privacy violations, with damages estimated at $50 million. The settlement resolves allegations that the company scraped facial images from the web and sold them without consent, violating Illinois’ Biometric Privacy Act. Instead of a lump sum payout, plaintiffs and their lawyers will receive a stake in Clearview’s future value due to the company’s financial limitations. This unusual arrangement stems from the fact that most Americans’ faces are accessible online, making a broad class of plaintiffs.
The case, tried in an Illinois federal court, accused Clearview AI of infringing on millions of Americans’ privacy rights.
The company used billions of facial images from publicly available sources and sold them without permission. While Clearview denies liability, the settlement allows the case to be resolved without admitting wrongdoing. The settlement also sets the stage for potential changes in how the company handles privacy moving forward.
Despite the settlement, 22 state attorneys general and the District of Columbia objected to the deal.
They argued that it doesn’t adequately prevent future violations and that much of the settlement amount would go toward paying legal fees. Their concerns stem from the settlement’s structure and the lack of further safeguards for individuals’ biometric data. The dispute highlights ongoing concerns about facial recognition technology and privacy protections.
Clearview AI previously reached a separate agreement with the ACLU in 2022. The company agreed to stop providing most private companies and Illinois government agencies with access to its database for five years. Recently, Clearview experienced a leadership change, with Hoan Ton-That resigning as CEO and two new co-CEOs taking over. One of the new leaders has significant ties to former President Donald Trump, adding to the company’s evolving public image.
Reference:
