Illinois Biometric Data Privacy Law Amendment Reduces Settlement Amounts

Background

The Illinois Biometric Information Privacy Act (BIPA) has been a hot topic in the legal realm, with lawsuits resulting in astronomical damages claims and settlements for alleged violations

However, a recent change in the law may significantly reduce the financial burden for carriers indemnifying these lawsuits

Key Change

In a 4-3 decision, the Illinois Supreme Court ruled that a separate claim accrues under the Act each time a private entity scans or transmits an individual's biometric data

This ruling effectively limits the potential damages that can be claimed in these lawsuits

Impact on Carriers

The amendment to BIPA has significant implications for carriers that provide insurance to businesses that collect biometric data

With the reduction in potential damages, carriers may see a decrease in the settlement amounts they are required to pay

Limitations

It's important to note that the amendment does not eliminate the potential for large settlements

Damages may still be significant in cases involving multiple scans or transmissions of biometric data or if other violations of BIPA are alleged

Conclusion

The amendment to BIPA is a significant development that could have a major impact on the litigation landscape in Illinois

Carriers that provide insurance to businesses that collect biometric data should carefully review the amendment and seek legal counsel to understand its implications for their business