Clearview AI slapped with $45.6M fine in the Netherlands.

TLDR:

Clearview AI has been fined 30.5 million euros by the Dutch data protection watchdog for creating an illegal database of faces. The agency stated that facial recognition is a highly invasive technology and must be used responsibly. Clearview AI has been warned by the DPA and could face additional noncompliance penalties if it doesn’t halt the breaches of the regulation.

Summary:

The Dutch data protection watchdog has issued a fine of 30.5 million euros ($45.6 million Cdn) to facial recognition startup Clearview AI for creating an “illegal database” of billions of photos of faces. The agency emphasized that facial recognition is a highly intrusive technology that must be used responsibly.

The Dutch Data Protection Agency (DPA) also warned Dutch companies against using Clearview’s services, stating that using the software is banned. Clearview AI has not objected to the fine but has argued that the decision is unlawful and lacks due process.

The DPA highlighted that Clearview AI’s actions violated the European Union’s General Data Protection Regulation (GDPR) by building the database without informing the individuals whose images were used. The agency warned that if Clearview continues to breach the regulation, it could face additional noncompliance penalties.

Clearview AI claims that it does not fall under EU data protection regulations as it doesn’t have a place of business in the Netherlands or the EU, nor does it have customers or undertake activities subject to the GDPR. However, the DPA has made it clear that any use of Clearview AI by Dutch companies is prohibited.

In addition to the fine in the Netherlands, Clearview AI recently settled an Illinois lawsuit for over $50 million US, alleging privacy violations related to its facial recognition database. The case highlighted concerns over the collection of photos from social media to create a database sold to businesses, individuals, and government entities.