Clearview AI, a facial recognition startup, recently settled a lawsuit in Illinois concerning the alleged violation of privacy rights due to its extensive collection of facial images. The agreement reached in the federal suit was estimated to be worth over $50 million, with attorneys’ fees amounting to $20 million. Judge Sharon Johnson Coleman granted preliminary approval to the settlement, which combined multiple lawsuits from across the U.S. against Clearview. The company had gathered photos from social media and other online sources to create a database sold to various entities, including businesses, individuals, and government agencies.
The Nature of the Settlement
In 2022, Clearview settled a separate case related to privacy rights infringement in Illinois by agreeing to cease selling access to its database to private entities. Nonetheless, the company was permitted to continue collaborating with federal agencies and local law enforcement outside Illinois. Importantly, Clearview did not acknowledge any wrongdoing as part of the recent settlement agreement. The arrangement, which offers plaintiffs a share of the company’s potential value rather than a traditional monetary payout, has been hailed as a “creative solution” by lead plaintiffs’ attorney Jon Loevy. He emphasized the necessity of this approach due to Clearview’s financial limitations.
Despite the optimism expressed by Clearview and its legal representatives, some privacy advocates and individuals involved in other legal actions against the company have voiced disappointment regarding the settlement. Attorney Sejal Zota, who serves as the legal director for Just Futures Law, an organization representing plaintiffs in a California lawsuit against Clearview, criticized the agreement for failing to address the core issues at hand. Zota argued that the settlement serves to legitimize Clearview’s questionable practices without enacting meaningful changes to the company’s operations.
The broad scope of the settlement, extending eligibility to individuals whose images or data were part of Clearview’s database while residing in the U.S. since July 1, 2017, has raised concerns about the potential ramifications for data privacy rights. The involvement of a retired federal judge, Wayne Andersen, in mediating the agreement underscores the complex financial challenges faced by Clearview. Andersen’s assertion that the startup lacked the financial capacity to withstand a substantial legal judgment highlights the precarious position in which Clearview found itself.
As the fallout from the settlement reverberates across the legal landscape, questions linger about the efficacy of such agreements in addressing systemic issues related to data privacy and corporate accountability. The disparity between Clearview’s expansive database of facial images and the limited recourse available to affected individuals underscores the challenges inherent in regulating emerging technologies like facial recognition. Moving forward, advocates and legal experts are likely to closely monitor Clearview’s activities and the broader implications of its settlement strategies on data privacy enforcement efforts.
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