A historic settlement filed in court on Monday highlighted the power of Illinois’ strong privacy law and will result in new nationwide restrictions on a controversial technology company infamous for selling access to the largest known database of facial images.

The deal permanently banning Clearview AI from providing most private entities with free or paid access to its database stems from a lawsuit that the ACLU and partners filed in 2020, arguing that the company violated Illinois’ Biometric Information Privacy Act (BIPA).

In addition to permanently banning Clearview from granting private companies and individuals access to the database, the settlement has some state-specific limits. For the next five years, Clearview can’t allow private companies with exceptions under BIPA or state or local government entities in Illinois, including law enforcement, access to the database.

One key exception is that, Clearview will still be able to provide its database to U.S. banks and financial institutions under a carve-out in the Illinois law.

Hoan Ton-That, chief executive of Clearview AI, said the company did “not have plans” to provide the database “to entities besides government agencies at this time.” The settlement does not mean that Clearview cannot sell any product to corporations. It will still be able to sell its facial recognition algorithm, without the database of 20 billion images, to companies.

Nathan Freed Wessler, a deputy director of the ACLU Speech, Privacy, and Technology Project, said that

“By requiring Clearview to comply with Illinois’ pathbreaking biometric privacy law not just in the state, but across the country, this settlement demonstrates that strong privacy laws can provide real protections against abuse.”

“Clearview can no longer treat people’s unique biometric identifiers as an unrestricted source of profit,” he said. “Other companies would be wise to take note, and other states should follow Illinois’ lead in enacting strong biometric privacy laws.”

Surveillance Technology Oversight Project executive director Albert Fox Cahn stated “this is a milestone for civil rights, and the ACLU deserves our thanks for once again safeguarding our Constitution.”

“Banning Clearview AI in one state is not enough; we need a national ban,” Fox Cahn asserted. “Illinois has long been ahead of the curve in protecting residents from biometric surveillance, but it’s time for the rest of the country to catch up.”

Via: Common Dreams