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Clearview AI settles privacy lawsuit, changes data policies

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"Privacy Lawsuit Settlement"

Clearview AI, a Chicago-based facial recognition firm, has agreed to delete stored facial data and prevent invasive collection in a significant privacy lawsuit settlement. The company said it has already begun imposing strict data laws to avoid further breaches. However, several critics have argued that the settlement is inadequate, not doing enough to penalize the company or prevent future privacy infringements.

The settlement reached last Friday, estimated at over $50 million, offers complainants a calculated share of the company’s current and future worth. This novel approach to settlement paves a new path in corporate litigation. Approximately $20 million will be withheld for legal costs, affirmed by Judge Sharon Johnson Coleman of the Northern District of Illinois.

The settlement culminates several nationwide suits challenging Clearview’s use of images from the internet to create a far-reaching facial recognition database. Critics have voiced concerns over potential misuse and false identifications, while lawsuits in various states accused Clearview of privacy law infringement.

Clearview AI’s significant privacy lawsuit settlement

The settlement confirms the company will modify its data collection methods for stricter adherence to privacy regulations.

Despite the settlement, Clearview continues to deny any liability and will sustain collaboration with law enforcement outside Illinois. Following a 2022 Illinois decision stating Clearview infringed on individuals’ privacy rights, the company stopped selling database access to private entities. The company reiterated the legal nature and vital role of its services in law enforcement while committing to modify service provision. This change, however, does not extend to law enforcement bodies.

James Thompson, Clearview’s legal representative, has expressed satisfaction with the settlement, citing it as a creative resolution to Clearview’s financial predicament. Jon Loevy, the attorney for the plaintiffs, praised his team’s perseverance, and how the case signifies the fortitude of rule of law in intricate corporate settings. Both legal representatives continue to show unwavering support to their respective clients, exemplifying justice in its purest form.

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Becca Williams is a writer, editor, and small business owner. She writes a column for Smallbiztechnology.com and many more major media outlets.