The Dutch regulator fined Clearview AI €29.5M for the GDPR violation. Learn the accusations and ramifications of the American facial identification technology company.
Introduction:
The Dutch Data Protection Authority (DPA) has recently fined the AI-powered facial recognition firm Clearview AI € 600,000 for breaching the GDPR. This is the company’s highest penalty under GDPR, which sums up to 30. 5 million Euros, which is about 33. 7 million of the US dollars. The American facial recognition company is under pressure for its privacy policies around the world.
Background of the Fine:
Clearview AI has earlier faced fines from countries such as the UK, Australia, France, and Italy over invading people’s privacy. This is not the first time the Dutch DPA has taken action against Facebook for failing to protect consumer data as the company has been cooking up an illicit database of images and unique biometric codes that the users have not authorized.
Allegations Against Clearview AI:
The Dutch DPA accused Clearview AI of several GDPR violations: The Dutch DPA accused Clearview AI of several GDPR violations:
- Illegal Database Creation: It is accused of creating a library of different images and exclusive facial codes by stealing photos from social media with the user’s permission.
- Lack of Transparency: There was also no way of enlightening people on how their biometric data and images were being used by the company.
- Continuous Violations: However, new investigations and previous fines have not deterred Clearview AI from their unlawful operations as reported by the Dutch DPA, who have suggested further fines.
Potential Executive Liability:
This raised the alarm that the Dutch DPA is mulling to legally sue Clearview AI’s directors for the violations of GDPR. If it is clear that the directors knew about the violations and chose to ignore them, they could face liability. This approach aims to encourage compliance and prevent further violations in the future.
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Clearview AI’s Response:
Now, Clearview AI said that the Dutch DPA’s decision is legally invalid. In an email interview, Jack Mulcaire, Clearview’s chief legal officer, said the company does not operate in the Netherlands or the EU and thus has no clients there, making it exempt from GDPR compliance. Said Mulcaire, such order was made unlawful and without any proper process and would not be enforceable.
Privacy and Regulation Ramifications:
This fine coupled with the data privacy issues depict the magnitude of enforcement of GDPR among the organizations. Moreover, it allegedly serves as a deterrent to other companies, highlighting the consequences of ignoring privacy standards.
Conclusion:
The recent decision of the Dutch DPA to fine Clearview AI for violations of data protection laws shows that violations of the rights of individuals by organizations that store and process personal data are becoming a thing in the world today and this calls for more effective legislation. With a focus on this trend, corporations need to be extra careful to engage in transparent and legal activities, failure to which they will be liable for fines and even legal suits against their managers.
