Illinois has recently clarified how damages are calculated under the Biometric Information Privacy Act (BIPA) to avoid excessive liability for companies. The state legislature’s actions come in response to concerns about the potential for “annihilative liability” under the law.
BIPA, enacted in 2008, requires companies to obtain consent before collecting biometric data from individuals, such as fingerprints or facial recognition scans. Violations of the law can lead to significant financial penalties, including damages of $1,000 to $5,000 per violation.
However, there have been concerns that the potential damages under BIPA could be too severe, leading to a flood of lawsuits against businesses. In response, the Illinois legislature passed a bill clarifying that damages are to be calculated based on the seriousness of the violation and the harm caused to individuals, rather than the number of times a company violated the law.
The bill also includes provisions for companies to cure any violations within a specified time period without facing damages. This is intended to give companies the opportunity to rectify violations and avoid costly lawsuits.
The changes to BIPA have been welcomed by businesses in Illinois, who have expressed relief at the clarification of how damages will be calculated. They believe that the new provisions will help protect companies from excessive liability while still ensuring that individuals’ biometric data is protected.
Overall, the Illinois legislature’s actions to clarify damages under BIPA are seen as a positive step towards striking a balance between protecting individual privacy rights and preventing companies from facing financially crippling lawsuits. The new provisions aim to ensure that companies are held accountable for violations of the law, while also providing them with the opportunity to address and rectify any issues before facing punitive damages.
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