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Facebook $550M Privacy Settlement Shows Risk Tech Companies Face

Jan. 30, 2020, 7:24 PM

Facebook Inc.'s $550 million settlement of a lawsuit over users’ image data highlights the risk companies face under privacy laws that make it easier for consumers to sue.

Facebook settled a case brought under Illinois’ biometric privacy law, which empowers individuals to file lawsuits alleging violations. Other states and Congress are contemplating the creation of similar private-right-of-action provisions at the urging of consumer advocates.

Private rights of action and statutory damages are “essential for protecting our privacy,” said Ari Ezra Waldman, director of the New York Law School’s innovation center for law and technology.

Tech companies may face a new...

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