Illinois is on the verge of amending its Biometric Information Privacy Act (BIPA), a unique state law that has been at the forefront of biometric data privacy. A new proposal in the state legislature aims to reduce the financial damages that companies could face for violations. Currently, BIPA imposes a $1,000 penalty for each instance a company violates the law. The proposed bill would modify this, imposing a $1,000 penalty per individual on a one-time basis instead, significantly limiting potential damages.
This legislative change comes after a notable legal decision involving the fast-food chain White Castle. The Illinois Supreme Court upheld significant potential damages against White Castle for multiple violations of BIPA, related to its use of fingerprint authentication without proper consent. The court described the possible financial consequences for White Castle as “annihilative” and called for the legislature to reconsider the punitive aspects of the law. This case has highlighted concerns about the current law’s capability to impose crippling financial burdens on companies over technical violations.
The bill’s sponsor, State Senator Bill Cunningham, has indicated that the current wording of BIPA encourages companies to settle lawsuits out of court due to the fear of massive judgments. This, according to Cunningham, was not the original intention of the General Assembly. He emphasized that while the protection of biometric information is crucial and supported by citizens, the penalties should be fair and not disproportionately punitive.
The amendment has already passed the state Senate and is expected to be voted on by the General Assembly soon. The support for the bill suggests a strong consensus for adjusting BIPA to ensure that while strong protections for biometric data remain, the penalties for violations do not unjustly threaten the viability of businesses. This balance aims to ensure that cases are adjudicated on their merits rather than settled out of fear of financial ruin, fostering a more just application of the law.
