CCBJ May -June 2021

Page 15

Pulse Managing Risk of Liability Stemming from Biometric Tech and Privacy Laws CORT MALONE, ROBERT CHESLER, AND JAMES GOODRIDGE ANDERSON KILL

 Using biometrics may increase efficiency, but companies that do so should also be careful to avoid – and insure against – liability. Biometric technology is here, and its use will only continue to grow in the coming years. As a result, litigation under privacy laws protecting individuals’ biometric information has exploded. Such litigation will likewise continue to grow, as evidenced by the activity of the past few months. In January, a group of New York state legislators introduced

In February and early March, four major developments occurred regarding BIPA litigation. First, a California District Court approved Facebook’s $650,000,000 biometrics settlement. Second, the popular music video app Tik-Tok agreed to pay $92,000,000 in a biometrics settlement of BIPA claims, though approval of the settlement has been delayed until at least April 6, in light of claims that the settlement’s value is “embarrassingly low.” In re TikTok Inc. Consumer Privacy Litigation, 1:20-cv-04699, (N.D. Ill 2020).

of action similar to the already enacted Illinois Biometric

Third, Holiday Inn was sued in Illinois by its own insurance company for making a coverage claim for a biometric class action. AXIS Surplus Insurance Co. v. New Crown Holdings

Information Privacy Act (BIPA).

LLC, case number 2021CH00900.

a biometrics regulation bill that contains a private right

CORPORATE COUNSEL BUSINESS JOURNAL

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