Facial recognition startup Clearview AI recently reached a settlement in an Illinois lawsuit that alleged its collection of faces violated privacy rights. This unique agreement is estimated to be worth more than $50 million, with attorneys’ fees of $20 million coming out of the settlement amount. The plaintiffs in the federal suit will receive a share of the company’s potential value, rather than a traditional payout.
The case consolidated lawsuits from around the U.S. that were filed against Clearview AI, a company that gathered photos from social media and the internet to create a database marketed to businesses and government entities. The settlement prohibits the company from selling access to its database to private businesses or individuals but allows it to work with federal agencies and local law enforcement outside Illinois.
While the company does not admit any liability as part of the agreement, some view it as a positive step forward given Clearview’s financial status. Lead plaintiff attorney Jon Loevy referred to the settlement as a “creative solution” due to Clearview’s lack of funds to provide fair compensation to the affected class. This approach aims to recapture some ownership of biometrics for the victims whose privacy was breached.
The settlement agreement is broad, encompassing anyone whose images or data are in Clearview’s database and who lived in the U.S. starting on July 1, 2017. A national campaign will be launched to notify potential plaintiffs about the settlement. Former federal judge Wayne Andersen mediated the legal case, emphasizing Clearview’s inability to pay a significant legal judgment if the case proceeded.
Despite the settlement, some privacy advocates and individuals pursuing legal action against Clearview view the agreement as a disappointment that does not address the company’s problematic operations. Sejal Zota, an attorney representing plaintiffs in a California suit against Clearview, believes the agreement legitimizes the company without addressing the root cause of the privacy concerns.
The settlement of the Clearview AI privacy lawsuit presents a complex and nuanced resolution to a contentious legal battle. While the agreement provides a potential financial remedy to those affected by the company’s actions, it also raises questions about the efficacy of such settlements in addressing systemic issues related to privacy and data protection. Moving forward, continued scrutiny and advocacy will be essential to ensure that technology companies uphold ethical standards and prioritize user privacy in their operations.
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