Trampoline Park Reaches $1M Settlement of BIPA Lawsuit

Sky Zone, an indoor trampoline park company, has agreed to a settlement exceeding $1 million to resolve a class-action lawsuit filed under Illinois’ Biometric Information Privacy Act (BIPA).

The lawsuit alleged that between April 29, 2014, and April 23, 2024, Sky Zone required employees in Illinois to scan their fingerprints without complying with BIPA’s consent and disclosure requirements. Although Sky Zone denies any wrongdoing, the settlement was reached to avoid the expenses associated with prolonged litigation.

Under the terms of the settlement, eligible employees who had their fingerprints scanned during the specified period can claim compensation. There are two groups eligible for the payout. Group one includes employees already notified by their employer about their fingerprint records with Sky Zone; these individuals do not need to make a claim. Group two includes other employees who need to file a claim, especially those from Sky Zone locations in Elmhurst, Aurora, or Joliet.

The compensation amounts will vary, with estimates suggesting that individuals who file claims may receive between $350 and $650 each. The deadline to file a claim is July 29, 2024.

The latest wave of Biometric Information Privacy Act (BIPA) lawsuits continues to target companies in Illinois, with critics arguing that the law disproportionately affects small and medium-sized businesses compared to larger corporations.

In May, the Illinois legislature passed an amendment to BIPA, changing the penalty structure from a ‘per-scan’ to a ‘per-victim’ basis. This amendment, which will impose a maximum fine of $1,000 per person for recording biometric data without written consent, aims to mitigate the high volume of lawsuits driven by the previous, more severe provisions.

However, some critics believe this change is insufficient, as it does not apply retroactively to protect companies from past violations.

Source: The U.S. Sun

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July 23, 2024 — by Ali Nassar-Smith