Clearview AI Faces $45.6M Fine In The Netherlands For 'illegal Database' Of Faces | CBC News

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The Dutch data protection watchdog on Tuesday issued facial recognition startup Clearview AI with a fine of 30.5 million euros ($45.6 million Cdn) over its creation of what the agency called an “illegal database” of billions of photos of faces.

The Dutch data protection watchdog said Tuesday that facial recognition is a ‘highly invasive technology’The Associated Press

· Posted: Sep 03, 2024 10:04 AM EDT | Last Updated: September 3

Clearview AI, whose facial recognition software is being demonstrated in this 2022 file photo, has been fined millions of euros by a Dutch data protection watchdog, which says building a database of faces without informing those depicted amounts to serious breaches of privacy rights. (Seth Wenig/The Associated Press)The Dutch data protection watchdog on Tuesday issued facial recognition startup Clearview AI with a fine of 30.5 million euros ($45.6 million Cdn) over its creation of what the agency called an “illegal database” of billions of photos of faces.

The Netherlands’ Data Protection Agency, or DPA, also warned Dutch companies that using Clearview’s services is also banned.    

The data agency said that New York-based Clearview “has not objected to this decision and is therefore unable to appeal against the fine.”

But in a statement emailed to The Associated Press, Clearview’s chief legal officer, Jack Mulcaire, said that the decision is “unlawful, devoid of due process and is unenforceable.”

As part of the decision, Dutch companies are also banned from using Clearview AI, according to the Netherlands’ Data Protection Agency. (Ascannio/Shutterstock)The Dutch agency said that building the database and insufficiently informing people whose images appear in the database amounted to serious breaches of the European Union’s General Data Protection Regulation, or GDPR.

“Facial recognition is a highly intrusive technology, that you cannot simply unleash on anyone in the world,” DPA chairman Aleid Wolfsen said in a statement.

“If there is a photo of you on the Internet — and doesn’t that apply to all of us? — then you can end up in the database of Clearview and be tracked. This is not a doom scenario from a scary film. Nor is it something that could only be done in China,” he said.

DPA said that if Clearview doesn’t halt the breaches of the regulation, it faces noncompliance penalties of up to 5.1 million euros ($5.6 million Cdn) on top of the fine.

Clearview AI says company not subject to EU regulationsMulcaire said in his statement that Clearview doesn’t fall under EU data protection regulations.

“Clearview AI does not have a place of business in the Netherlands or the EU, it does not have any customers in the Netherlands or the EU, and does not undertake any activities that would otherwise mean it is subject to the GDPR,” he said.

Anyone could end up on Clearview AI’s database and be tracked if a photo of them exists anywhere on the internet, the watchdog warns. (Chris Wattie/Reuters)In June, Clearview reached a settlement in an Illinois lawsuit alleging its massive photographic collection of faces violated the subjects’ privacy rights, a deal that attorneys estimate could be worth more than $50 million US. Clearview didn’t admit any liability as part of the settlement agreement.

The case in Illinois consolidated lawsuits from around the U.S. filed against Clearview, which pulled photos from social media and elsewhere on the internet to create a database that it sold to businesses, individuals and government entities.

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