Photobucket Faces Class Action Lawsuit Over AI Data Sale Plans

Photo-sharing platform Photobucket is facing a class action lawsuit over its recent privacy policy update, which disclosed plans to sell users’ photos and biometric identifiers to companies developing generative AI models. This case follows several other high-profile legal challenges related to biometric data collection for AI training, including Google’s “Diversity in Faces” dataset controversy.

The lawsuit aims to prevent Photobucket from selling users’ data without obtaining written consent. The legal action claims that the company failed to comply with privacy laws in states such as Illinois, New York, and California by asserting it cannot reliably determine users’ geographic locations. Illinois’s Biometric Information Privacy Act (BIPA) has been particularly influential in this area, with multiple major companies facing similar litigation over biometric data collection practices.

The litigation identifies two distinct affected classes. The first includes anyone who uploaded photos to Photobucket between its 2003 founding and May 1, 2024. The second class comprises non-users whose images were uploaded to the platform and whose biometric data may have been collected without consent. This dual-class structure reflects the growing recognition that biometric privacy rights extend beyond direct platform users.

The legal complaint specifically addresses the collection and sale of biometric identifiers, including face and iris scans. If a jury determines that Photobucket improperly enriched itself by breaching user contracts and illegally acquiring biometric data without consent, the company could face substantial penalties. With a potential user base of up to 100 million, damages could amount to $5,000 per willful or reckless violation of applicable statutes.

The case highlights evolving legal questions surrounding the use of user-generated content and biometric data for AI training purposes. Several states have enacted strict privacy laws governing the collection and use of biometric information, requiring explicit consent from individuals before their data can be collected or sold. Colorado recently strengthened its privacy protections specifically for biometric data, indicating a broader trend toward stricter regulation of biometric information handling practices.

The lawsuit emerges amid growing scrutiny of how tech companies use personal data for AI development, particularly as generative AI models become more sophisticated and valuable. The outcome could set important precedents for how photo-sharing platforms and other social media companies handle biometric data and obtain consent for AI training purposes.

Sources: YRO Slashdot, Courthouse News, Readspike, Fresh News

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December 12, 2024 – by Ji-seo Kim

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