Thomson Reuters Settles Class-Action Lawsuit Over AI-Driven Data Collection: California Residents Eligible for Payment
Thomson Reuters, a prominent Canadian media and technology conglomerate renowned as the parent company of the British news outlet Reuters, has reached a $27.5 million settlement in a class-action lawsuit. The lawsuit alleged that the company, through its AI program called Clear, collected personal information from individuals without their consent and subsequently sold this data to various entities. While the alleged data collection spanned across the United States, this particular settlement specifically addresses claims made by California residents. The deadline to opt in to the settlement is rapidly approaching, set for Friday, December 27, 2024.
The lawsuit, originally filed in 2020 by California-based activist Cat Brooks and journalist Rasheed Shabazz, accused Thomson Reuters of utilizing Clear to amass a substantial volume of personal data, including photos, identifying information, and other sensitive details, belonging to American consumers, specifically Californians. This data acquisition, the lawsuit contended, occurred without the informed consent of the individuals involved. Further aggravating the alleged violation, the suit claimed that this harvested information was then commercially exploited, being sold to corporations, law enforcement agencies, and government bodies.
The settlement encompasses a broad range of potential claimants, encompassing any adult who resided in California between December 3, 2016, and October 31, 2024. Each eligible claimant is projected to receive a payout ranging from $19 to $48. Individuals seeking to participate in the settlement must complete an online form to formally opt in. It’s crucial to note the approaching deadline, as claims must be submitted by the end of Friday, December 27, 2024. This deadline represents an extension from the original date of December 6, 2024, providing an additional window of opportunity for eligible Californians to participate.
This case highlights the growing concerns surrounding the privacy implications of artificial intelligence. A 2023 consumer trust report published by the International Association of Privacy Professionals (IAPP) revealed widespread apprehension about the impact of AI technologies on personal privacy. According to the IAPP survey, a significant majority of consumers, approximately 57%, expressed the belief that AI constitutes a substantial threat to their privacy. These anxieties are further corroborated by a joint 2023 study conducted by KPMG and the University of Queensland, which found that 53% of respondents believed that AI will exacerbate the challenges individuals face in maintaining the privacy of their personal information.
The Thomson Reuters settlement underscores the ongoing tension between technological advancement and individual privacy rights. As AI technologies become increasingly sophisticated and integrated into various aspects of life, concerns regarding data collection, usage, and security are amplified. This case serves as a reminder of the importance of transparency and user consent in the development and deployment of AI systems. The settlement also emphasizes the role of legal action in holding corporations accountable for potential misuse of personal data and underscores the need for robust regulations to protect individual privacy in the age of AI.
For California residents who meet the eligibility criteria, opting into the settlement is a straightforward process involving the completion of an online form. Given the approaching deadline, prompt action is advised. This settlement offers a measure of redress for the alleged unauthorized collection and sale of personal information and provides an opportunity for affected individuals to receive compensation. It also serves as a significant legal precedent in the evolving landscape of AI and data privacy.
