Jan 30, 2020

Facebook to pay $550 million over facial recognition tagging system

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

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 5,929,312 — Total deaths: 357,781 — Total recoveries — 2,385,926Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 1,709,996 — Total deaths: 101,002 — Total recoveries: 391,508 — Total tested: 15,192,481Map.
  3. States: New York to allow private businesses to deny entry to customers without masks.
  4. Public health: Louisiana Sen. Cassidy wants more frequent testing of nursing home workers.
  5. Congress: Pelosi slams McConnell on stimulus delay — Sen. Tim Kaine and wife test positive for coronavirus antibodies.
  6. Business: Louisiana senator says young people are key to reopening the economy —U.S. GDP drop revised lower to 5% in the first quarter.
  7. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 15 mins ago - Politics & Policy

Twitter fact-checks Chinese official's claims that coronavirus originated in U.S.

Chinese Foreign Ministry spokesman Zhao Lijian. Photo: Greg Baker/AFP via Getty Images

Twitter slapped a fact-check label on a pair of months-old tweets from a Chinese government spokesperson that falsely suggested that the coronavirus originated in the U.S. and was brought to Wuhan by the U.S. military, directing users to "get the facts about COVID-19."

Why it matters: The labels were added after criticism that Twitter had fact-checked tweets from President Trump about mail-in voting, but not other false claims from Chinese Communist Party officials and other U.S. adversaries.

Podcast: Trump vs. Twitter, round two

President Trump is escalating his response to Twitter’s fact check of his recent tweets about mail-in voting, issuing an executive order that's designed to begin limiting social media's liability protections. Dan digs in with Axios' Margaret Harding McGill.

Go deeper: Twitter vs. Trump... vs. Twitter

38 mins ago - Politics & Policy