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Illustration: Sarah Grillo/Axios

Facebook said on Wednesday it will pay $550 million in response to an Illinois-based class-action lawsuit against the facial recognition technology in its photo-labeling service, the New York Times reports.

The big picture: The settlement is a sign that state-level regulations on facial recognition can extract real penalties from social media giants like Facebook, as more states introduce bills to regulate, ban or study the tech.

What's next: Facebook will be required to "obtain full consent from Illinois consumers before any collection of their biometric information takes place" under the terms of the settlement, according to a Wednesday press release from the firms representing Illinois Facebook users, who are plaintiffs in the case.

  • Each member of the lawsuit "is likely to be compensated $200 or more," according to the firms.

Details: Facebook’s Tag Suggestions feature uses face-matching software to scan users' photos and suggest names for each person pictured. The lawsuit accused Facebook of violating Illinois biometric privacy law by amassing users' facial data without their consent or explaining how long the data would be stored, the Times reports, noting that "Facebook has said the allegations have no merit."

  • The fine amounts to the largest-ever cash settlement resolving a privacy-related lawsuit, the firms representing Illinois Facebook users claimed on Wednesday.

What they're saying: Facebook’s chief financial officer David Wehner told investors in an earnings call that the $550 million settlement added to the site's increasing administrative and general costs, which have grown 87% from last year, according to the Times.

Go deeper: Facebook expands its use of facial recognition technology

Go deeper

Updated 37 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Hospital crisis deepens as holiday season nears.
  2. Vaccine: Moderna to file for FDA emergency use authorizationVaccinating rural America won't be easy — Being last in the vaccine queue is young people's next big COVID test.
  3. Politics: Bipartisan group of senators seeks stimulus dealChuck Grassley returns to Senate after recovering from COVID-19.
  4. States: Cuomo orders emergency hospital protocols as COVID capacity dwindles.
  5. Economy: Wall Street wonders how bad economy has to get for Congress to act.
  6. 🎧 Podcast: The state of play of the top vaccines.
1 hour ago - Health

First blood test to help diagnose Alzheimer's goes public

Photo: Jerry Naunheim Jr./C2N Diagnostics via AP

A non-COVID medical breakthrough: People over 60 now have access to a blood test for Alzheimer's disease.

Why it matters: The existing PET brain scan test costs some people about $5,000 and often isn't covered by insurance, AP reports.

Updated 2 hours ago - Politics & Policy

Wisconsin, Arizona certify Biden's victories

Photo: Demetrius Freeman/The Washington Post via Getty Images

Arizona and Wisconsin officials confirmed the presidential election results in their states, formalizing President-elect Joe Biden's victories in the key battlegrounds.

Why it matters: The moves deal yet another blow to President Trump's efforts to block or delay certification in key swing states that he lost.