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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

20 mins ago - Health

CDC mask guidance sparks confusion, questions

Illustration: Sarah Grillo/Axios

The CDC's surprise guidance last week freeing the fully vaccinated to go maskless sowed plenty of concerns across the country— even earning the Saturday Night Live treatment for all the questions it spurred.

Why it matters: With plenty of Americans still unvaccinated — and without any good way to confirm who has been vaccinated — some experts worry this could put many at increased risk.

Updated 2 hours ago - World

In photos: Israel-Hamas aerial bombardments enter second week

A ball of fire and a plume of smoke rise above buildings in Gaza City as Israeli forces shell the Palestinian enclave, early on May 17. Photo: Mahmud Hams/AFP via Getty Images

Israel and Hamas continued aerial bombardments into Monday morning, as fighting entered a second week.

Why it matters: The worst violence in the region since 2014 has resulted in the deaths of 197 people in Gaza, ruled by Hamas, and 10 in Israel. 58 Palestinian children and two Israeli children are among those killed since the aerial exchanges began on May 10, Reuters notes.

Lawmakers call for Israel-Hamas ceasefire amid aerial bombardments

Combination images of Republican Sen. Todd Young and Democratic Sen. Chris Murphy. Photo: Michael Reynolds-Pool/Getty Images/Greg Nash-Pool/Getty Images

Sen. Todd Young (R-Ind.) and 28 Senate Democrats on Sunday called for a ceasefire between Israel and Hamas as fighting continued into the night.

Driving the news: Young, a ranking member of the U.S. Senate Foreign Relations Subcommittee on Near East, South Asia, Central Asia and Counterterrorism, joined panel Chair Chris Murphy (D-Conn.) in a bipartisan statement saying: "Israel has the right to defend itself from Hamas' rocket attacks, in a manner proportionate with the threat its citizens are facing.