Broker Check

Facebook Settles Privacy Claims

July 27, 2020

Facebook has agreed to settle a class action suit for alleged violations of the Illinois Biometric Information Privacy Act (BIPA) for $650 million, after a California district court had rejected an earlier settlement of $550 million. The court indicated it would approve the revised settlement.

Each member of the class will get between $200 and $400 - well below BIPA statutory damages of $1,000 and $5,000.

The complaint was filed in 2015 alleging Facebook had violated BIPA's notice and consent requirement in using their biometric information. After five years of litigation, the court found the statutory violation was an invasion of privacy and gave plaintiffs standing under both the Constitution and BIPA. The court wanted, and got, a "record breaking" settlement.

While this settlement is unique, it may be a sign of higher settlements to come,  and also more electronic processing to make class actions easier.