Clearview AI Used Your Face. Now You May Get a Stake in the Company.

🌈 Abstract

The article discusses a settlement proposal in a class-action lawsuit against the facial recognition startup Clearview AI. The company is accused of invading privacy by scraping billions of photos from the internet and social media to build a facial recognition app used by law enforcement agencies. The proposed settlement would give a 23% stake in the company to Americans whose faces are in Clearview's database, rather than cash payments.

🙋 Q&A

[01] Advertisement

1. What is the key issue discussed in the article?

• Clearview AI, a facial recognition startup, is facing a class-action lawsuit for allegedly scraping billions of photos from the internet and social media to build a facial recognition app used by law enforcement agencies.
• The company has agreed to a settlement proposal, where it would give a 23% stake in the company to Americans whose faces are in its database, rather than cash payments.

2. Why is Clearview AI proposing this unusual settlement?

• Clearview AI does not have the funds to settle the class-action lawsuit, and the company would most likely go bankrupt before the case made it to trial.
• The lawyers for the plaintiffs and Clearview AI were "trapped together on a sinking ship," so they sought a "creative solution" to obtain a percentage of the value Clearview could achieve in the future.

3. How would the proposed settlement work?

• Anyone in the United States who has a photo of themselves posted publicly online could be considered a member of the class.
• The 23% stake in Clearview AI, valued at $225 million, would be collectively given to the class members.
• If the company goes public or is acquired, those who had submitted a claim form would get a cut of the proceeds. Alternatively, the class could sell its stake or opt to collect 17% of Clearview's revenue after two years.
• The plaintiffs' lawyers would also be paid from the eventual sale or cash-out, but they said they would ask for no more than 39% of the amount received by the class.

4. What are the criticisms of the proposed settlement?

• Some experts, such as Jay Edelson and Evan Greer, have expressed concerns about the "ick factor" of people who were harmed by Clearview's privacy violations becoming financially interested in the company's future success.
• They argue that the remedy should be stopping Clearview's practices, not paying "pennies" to the people who were harmed.

[02] Kashmir Hill

1. Who is Kashmir Hill, and what is her background?

• Kashmir Hill is a journalist who covers privacy and technology, and has written a book about facial recognition technology and Clearview AI.