The Dutch data protection agency has fined facial recognition startup Clearview AI 30.5 million euros ($33.7 million) for creating what it deems an “illegal database” containing billions of photos of faces. Additionally, the agency has prohibited Dutch companies from utilizing Clearview’s services. Clearview AI has not contested the decision, rendering it unable to appeal the fine. However, Clearview’s chief legal officer, Jack Mulcaire, denounced the ruling as “unlawful, devoid of due process and unenforceable.”
According to the Dutch Data Protection Agency (DPA), Clearview’s actions in constructing the database and failing to adequately inform individuals whose images are included in it constitute severe violations of the European Union’s General Data Protection Regulation (GDPR). DPA Chairman Aleid Wolfsen emphasized the intrusive nature of facial recognition technology, cautioning against its unrestricted use on a global scale.
In response to the fine and warnings from the DPA, Clearview faces potential noncompliance penalties of up to 5.1 million euros ($5.6 million) if it does not cease violating the regulation. Mulcaire contends that Clearview AI is not subject to EU data protection regulations as the company lacks a physical presence or customers within the Netherlands or the EU.
Notably, Clearview recently settled a lawsuit in Illinois alleging that its extensive collection of facial images infringed upon privacy rights, with estimated settlement terms exceeding $50 million. The lawsuit consolidated legal actions from various parts of the U.S. against Clearview, which compiled images from social media and other online sources to create a database sold to businesses, individuals, and government agencies.
