Meta has agreed to pay $1.4 billion to Texas to resolve a lawsuit concerning the unauthorized use of facial recognition technology.

This settlement, which will be paid over five years, is the largest ever obtained from a single state in such cases.

The lawsuit claimed that Meta violated Texas state law by capturing and selling residents' biometric information without their consent.

Texas law requires companies to inform individuals and obtain consent before capturing biometric identifiers, a requirement Meta allegedly violated.

The issue originated from Meta's 'Tag Suggestions' feature, which automatically used facial recognition software on users' uploaded photos.

This case marks the first lawsuit and settlement under Texas's 2009 Capture or Use of Biometric Identifier (CUBI) Act.

Texas Attorney General Ken Paxton emphasized that the settlement demonstrates the state's commitment to holding large technology companies accountable for violating privacy rights.

The lawsuit could have resulted in fines of up to $35,000 per violation, highlighting the potential severity of the allegations against Meta.

In 2021, Meta announced it would shut down its facial recognition system and delete faceprints of over 1 billion people due to privacy concerns.

Previously, Facebook faced significant financial penalties, including a $650 million settlement in 2021 for similar data collection practices.

The decision regarding the settlement was made public on July 30, 2024, amidst ongoing scrutiny of tech companies over data usage.