This is the largest privacy-related settlement ever obtained by a state.

The 2022 lawsuit, filed by Texas Attorney General Ken Paxton, alleged that Meta used facial recognition software on photos uploaded to Facebook without Texans’ consent.

The settlement will be paid over five years. The attorney general’s office did not specify whether the money would go into the state’s general fund or be distributed differently.

The settlement does not admit guilt, and Meta maintains it did nothing wrong, although $1.4 billion does seem rather a lot for doing nothing.

This was the first lawsuit under a 2009 Texas law that protects biometric data like fingerprints and facial scans.

The law requires businesses to inform and get consent from individuals before collecting such data. It also limits sharing this data, except in certain cases like helping law enforcement or completing financial transactions. Businesses must protect this data and destroy it within a year after it’s no longer needed.

In 2011, Meta introduced a feature called Tag Suggestions to make it easier for users to tag people in their photos.

According to Paxton’s office, the feature was turned on by default and ran facial recognition on users’ photos, automatically capturing data protected by the 2009 law. This system was discontinued in 2021, with Meta saying it deleted over 1 billion people’s facial recognition data.

As part of the settlement, Meta must notify the attorney general’s office of any activities that may fall under the state’s biometric data laws.

If Texas objects, the parties have 60 days to resolve the issue. Meta officials said the settlement will make it easier to discuss the state’s biometric data laws with the attorney general’s office, adding that data protection and privacy are core priorities for the company.