THE HAGUE, Netherlands — The Dutch data protection watchdog on Tuesday issued facial recognition startup Clearview AI with a fine of 30.5 million euros ($33.7 million) over its creation of what the agency called an “illegal database” of billion of photos of faces.
The Netherlands’ Data Protection Agency, or DPA, also warned Dutch companies that using Clearview’s services is also banned.
The data agency said that New York-based Clearview “has not objected to this decision and is therefore unable to appeal against the fine.”
But in a statement emailed to The Associated Press, Clearview’s chief legal officer, Jack Mulcaire, said that the decision is “unlawful, devoid of due process and is unenforceable.”
The Dutch agency said that building the database and insufficiently informing people whose images appear in the database amounted to serious breaches of the European Union’s General Data Protection Regulation, or GDPR.
“Facial recognition is a highly intrusive technology, that you cannot simply unleash on anyone in the world,” DPA chairman Aleid Wolfsen said in a statement.
“If there is a photo of you on the Internet — and doesn’t that apply to all of us? — then you can end up in the database of Clearview and be tracked. This is not a doom scenario from a scary film. Nor is it something that could only be done in China,” he said.
DPA said that if Clearview doesn’t halt the breaches of the regulation, it faces noncompliance penalties of up to 5.1 million euros ($5.6 million) on top of the fine.
Mulcaire said in his statement that Clearview doesn’t fall under EU data protection regulations.
“Clearview AI does not have a place of business in the Netherlands or the EU, it does not have any customers in the Netherlands or the EU, and does not undertake any activities that would otherwise mean it is subject to the GDPR,” he said.
In June, Clearview reached a settlement in an Illinois lawsuit alleging its massive photographic collection of faces violated the subjects’ privacy rights, a deal that attorneys estimate could be worth more than $50 million. Clearview didn’t admit any liability as part of the settlement agreement.
The case in Illinois consolidated lawsuits from around the U.S. filed against Clearview, which pulled photos from social media and elsewhere on the internet to create a database that it sold to businesses, individuals and government entities.
The data protection watchdog has imposed a hefty $33.7 million fine on Clearview AI for operating what it deems to be an ‘illegal database’. The controversial facial recognition technology company has come under fire for its practices of scraping billions of images from social media platforms without users’ consent.
The fine, which was levied by the Information Commissioner’s Office (ICO) in the UK, marks one of the largest penalties ever imposed for a data protection violation. The ICO found that Clearview AI had violated multiple provisions of the General Data Protection Regulation (GDPR) by collecting and processing personal data without a lawful basis.
Clearview AI’s technology has raised serious concerns about privacy and civil liberties, as it allows law enforcement agencies and other organizations to identify individuals based on their facial features. The company claims that its technology is meant to help law enforcement agencies solve crimes more effectively, but critics argue that it poses a significant threat to individual privacy.
In addition to the fine, the ICO has ordered Clearview AI to delete all biometric data it has collected from UK citizens and to cease any further processing of personal data without a lawful basis. The company has also been instructed to implement measures to ensure compliance with data protection laws in the future.
The ICO’s decision to impose such a substantial fine on Clearview AI sends a clear message that companies must adhere to strict data protection regulations or face severe consequences. It also highlights the growing scrutiny of facial recognition technology and the need for robust regulations to protect individuals’ privacy rights.
Clearview AI has indicated that it plans to appeal the ICO’s decision, arguing that its technology is essential for public safety and that it has taken steps to address concerns about privacy. However, the company’s track record of disregarding data protection laws and operating in a secretive manner has raised doubts about its commitment to protecting individuals’ rights.
As governments around the world grapple with the ethical and legal implications of facial recognition technology, the case of Clearview AI serves as a cautionary tale about the importance of upholding data protection standards in the digital age. It also underscores the need for greater transparency and accountability from companies that collect and process personal data, particularly when it comes to sensitive biometric information.
